Tesla's shares fell more than 3 percent in after-hours trading as the electric vehicle maker's sales and profits fell short of expectations.
Electric vehicle price cuts and slower sales growth dented profits.
This week it emerged that the value of a used Tesla fell by more than $1,000 on average in the first half of January.
According to used car platform CarGurus, the average list price of a Tesla fell from $36,410 to $35,370 between Jan. 1 and Jan. 18.
This morning there are plans for a new mass-market electric vehicle codenamed “Redwood” for mid-2025 that would start at $25,000 – making it the cheapest electric vehicle on the market.
Tesla sold fewer cars than BYD in the last three months of 2023. Nevertheless, 484,000 cars were sold – supported by discounts on vehicle relocation
Tesla is reportedly planning to build a $27,000 electric car as a host of automakers struggle to promote the adoption of eco-vehicles. Pictured: CEO Elon Musk at a conference in Paris, France, in June 2023
Tesla's net income more than doubled last quarter, but that was due to a one-time tax benefit.
The Austin, Texas-based vehicle, solar panel and battery maker said its October-December net profit was $7.93 billion, compared with $3.69 billion a year earlier.
But excluding one-time items such as the $5.9 billion non-cash tax benefit for deferred tax assets, the company earned $2.49 billion, or 71 cents per share.
That was 39 percent less than a year ago and fell short of analysts' estimates. Data provider FactSet said analysts expected profit of 73 cents per share.
Tesla reported quarterly revenue of $25.17 billion, up 3 percent from a year ago but also below analyst estimates of $25.64 billion.
Shares of Tesla fell 3 percent in trading after markets closed on Wednesday.
Earlier this month, Tesla reported fourth-quarter sales rose nearly 20 percent, driven by sharp price cuts in the U.S. and worldwide throughout the year.
Some cuts totaled $20,000 on higher-priced models.
Tesla's new, reportedly $25,000 car is expected to produce 10,000 compact crossovers a week when production begins in June 2025, according to a new report.
The billionaire promised in 2020 that customers would get a cheaper electric vehicle – and “Redwood” could be part of that plan.
The move could be Musk's strategy to attract more buyers as Tesla's cheapest model – the Model 3 – at $43,900 saw a 15 percent drop in sales last year compared to 2022.
Tesla may be planning a new mass-market electric vehicle codenamed “Redwood” in mid-2025 that would start at $25,000 – making it the cheapest electric vehicle available. The Model 3 (pictured) is Tesla's cheapest vehicle at $43,900
Tesla has a proven track record of missing its launch and pricing targets, and it would take time to build volume as suggested in communications to suppliers. Production of the Cybertruck (pictured) was delayed and only accelerated slowly
Chinese carmaker BYD sold more electric cars than Tesla in the last three months of 2023. Tesla still sold more during the year
Fast-growing Chinese powerhouse BYD overtook Tesla as the world's top-selling electric vehicle company in the fourth quarter.
In its letter to shareholders released after the closing bell on Wednesday, Tesla warned that sales growth this year could be “significantly lower” than the 2023 growth rate as the company works to launch a next-generation vehicle in a Factory operating near Austin, Texas.
The company, the letter said, is between two major waves of growth, one driven by global expansion of the Model 3 and Model Y and a second driven by next-generation vehicles.
Tesla said Cybertruck deliveries will increase this year. Sales growth in energy storage is expected to outpace the automotive business again this year, the company said.