Tesla Stock Surges On Earnings: “Millions of Cars with Full Self-Driving Can Be Sold At 100% Gross Margin”

Tesla (TSLA) reported mixed fourth-quarter results Wednesday, topping earnings estimates while missing on revenue views. Tesla stock rose Wednesday, extending a powerful rebound of more than 40% from the bear market low.


After a terrible 2022, during which Tesla stock plunged sharply in December, shares tumbled again to start 2023. However, Tesla has bounced since its big price cuts announced Jan. 6 for vehicles in China, and kept rising since announcing U.S. and European price cuts a week later.

Tesla stock rose more than 4% after hours. Shares edged up 0.4% to 144.47 during Wednesday’s market trade, reversing higher.

Tesla Earnings

Estimates: Analysts forecast earnings jumping 33% to $1.13 per share in the fourth quarter. At the end of Dec. 2022, analysts predicted EPS of $1.25. Analysts had set the revenue target at 39% growth, to $24.67 billion.

Earnings: Tesla’s EPS advanced 40% to $1.19 while revenue grew 37% to $24.32 billion in Q4.

For the full year, revenue increased 51% to $81.46 billion, missing estimates. Earnings ballooned 80% to $4.07 per share, topping Wall Street expectations.

Tesla had already announced its deliveries hit a record 405,278 in the fourth quarter. This missed lowered forecasts despite aggressive year-end incentives. Vehicle deliveries jumped 31% vs. a year earlier and nearly 18% vs. Q3’s 343,830. The deliveries also swelled 40% to 1,313,851 in 2022. That was well below the company’s 50% growth goal.

Analysts had expected Q4 Tesla deliveries of roughly 420,000, whittled down significantly from higher estimates. Tesla’s Q3 deliveries also had fallen short.

Tesla production came in at 439,701 in the fourth quarter, exceeding deliveries by more than 34,000. In Q3, output topped sales by just over 22,000. Tesla production came in at 439,701 in the fourth quarter, exceeding deliveries by more than 34,000. In Q3, output topped sales by just over 22,000.

With output ramping up at the company’s Berlin and Austin, Texas, plants, Tesla’s overall production capacity is now well above 450,000 a quarter.

Tesla unit sales came in at…


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