Tesla Inc. (TSLA) Announces Q4 Earnings with Revenue Increase of 37%, Price Cuts in China, and Wedbush Price Target Raised to $200
Tesla Inc. (NASDAQ: TSLA) released its earnings results for Q4 2022 on Wednesday, revealing a 37 percent increase in revenue to $24.3 billion and a 59 percent increase in net profit once generally accepted accounting practices (GAAP) were applied. Automotive revenues accounted for the lion’s share of the quarter’s income, coming in at $21.3 billion, a 33 percent increase from Q4 2021.
The company also revealed its financial outlook for 2023, predicting 1.8 million cars sold and the start of production of the long-awaited Cybertruck pickup, which will be manufactured in Texas. Tesla also announced plans to invest $3.6 billion to expand its manufacturing capabilities in Nevada for “high-volume” production of electric semi-trucks and make enough cell batteries for 2 million light-duty vehicles annually.
Tesla’s Q4 balance sheet shows the company’s bitcoin holdings worth $184 million. In the fourth quarter of 2022, despite the crypto winter and its associated contagion, Tesla did not sell any digital assets.
In response to this news, Tesla shares shot up 6.65% in premarket trading to $154.00. At 05:26 ET (10:26 GMT), Tesla stock had increased 7.1% in premarket trading and was on track for its highest opening in over a month.
Tesla has also slashed prices for the Model 3 and Y in China, with the base Model 3 cut more than 13% to $33,570. CnEVPost reported that, according to local media in China, Tesla had received 30,000 orders within three days of announcing price reductions.
Elon Musk, the CEO, declared that orders for January up to this point have been the most powerful they have ever had, nearly double the amount of Tesla’s overall production. Without any issues, they could deliver two million cars in 2021.
Wedbush Securities increased its price target for Outperform-rated Tesla (TSLA) to $200 from $175. Analysts such as Dan Ives believe Tesla is making the correct decision to reduce margins in the short-term in order to increase their customer base and prevent other Electric Vehicle companies from Detroit, Europe, and China from gaining a foothold in the market.
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