https://assets.capyfin.com/instruments/678fdc13234e27009c5d5785.png avatar
Tesla
🇺🇸 NASDAQ:TSLA
View Company
OverviewEarningsDividends
•
Dec 31, 2023

Tesla Q4 2023 Earnings Report

Tesla's Q4 2023 results showcased revenue growth, profitability impacted by pricing and increased expenses, and strong cash flow.

Key Takeaways

Tesla's Q4 2023 saw a 3% YoY revenue increase to $25.2B. GAAP net income was $7.9B, including a one-time non-cash tax benefit of $5.9B. Operating income decreased to $2.1B, resulting in an 8.2% operating margin. Free cash flow was $2.1B, and cash and investments increased to $29.1B.

Total revenue grew 3% YoY in Q4 to $25.2B.

GAAP net income reached $7.9B in Q4, influenced by a $5.9B non-cash tax benefit.

Operating income decreased YoY to $2.1B with an 8.2% operating margin.

Cash, cash equivalents, and investments increased to $29.1B, driven by free cash flow and financing activities.

Total Revenue
$25.2B
Previous year: $24.3B
+3.5%
EPS
$0.71
Previous year: $1.19
-40.3%
Gross Margin
17.6%
Operating Margin
8.2%
Cash Flow from Operations
$4.37B
Gross Profit
$4.44B
Previous year: $5.78B
-23.2%
Cash and Equivalents
$17.2B
Previous year: $16.3B
+5.8%
Free Cash Flow
$2.06B
Previous year: $1.42B
+45.4%
Total Assets
$107B
Previous year: $82.3B
+29.5%

Tesla

Tesla

Tesla Revenue by Segment

Forward Guidance

Tesla is currently between two major growth waves and anticipates vehicle volume growth rate to be notably lower in 2024 as teams focus on the next-generation vehicle launch. The company expects the Energy Storage business to outpace the Automotive business in growth rate of deployments and revenue in 2024. Tesla has sufficient liquidity and will maintain a strong balance sheet. Hardware-related profits are expected to be accompanied by an acceleration of AI, software, and fleet-based profits over time. Cybertruck production and deliveries will ramp throughout the year, and progress continues on the next generation platform.

Positive Outlook

  • Sufficient liquidity to fund product roadmap and capacity expansion.
  • Energy Storage business growth to outpace Automotive business in 2024.
  • Acceleration of AI, software, and fleet-based profits expected.
  • Cybertruck production and deliveries will ramp throughout the year.
  • Continued progress on the next generation platform.

Challenges Ahead

  • Vehicle volume growth rate may be notably lower in 2024.
  • Teams focused on the launch of the next-generation vehicle at Gigafactory Texas.
  • Uncertain period requiring management of the business to maintain a strong balance sheet.
  • Downward pressure on solar demand continued into Q4 as interest rates have remained high.
  • Energy storage deployments decreased sequentially in Q4.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Tesla