Tesla, with record profits, says it can overcome short-term uncertainties

Tesla posted record profits in the fourth quarter and, faced with growing doubts about demand for its electric vehicles, says it is ready to face “short-term uncertainties”.

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The group saw its turnover increase by 37% over the period, to reach $24.3 billion, and its net profit soar by 59% to $3.7 billion, according to a press release issued on Wednesday.

“We know there are questions about the near-term impact of the uncertain macro environment, particularly with rising interest rates,” Tesla said.

But the company “is used to challenges”, adds the group. For now, it is “accelerating its cost reduction program and targeting higher production rates.”

Some observers fear that the economic slowdown, the rise in interest rates, which makes it more expensive to buy a car on credit, and the arrival of multiple competitors on the electric vehicle market, start-ups like traditional manufacturers, do not hinder the development of Tesla.

In 2022, Tesla delivered 1.31 million electric vehicles, which represents a record and a jump of 40% over one year. But the company had set itself the long-term goal of increasing its deliveries by an average of 50% per year.

The group’s share lost 65% in 2022, before recovering a little since the start of the year.

To boost sales, Tesla has lowered prices in recent months, first in China and then in Europe and the United States. A decision considered by some analysts as necessary to defend its market share, by others as a sign of weakness.

Tesla for its part says on Wednesday that making its cars more accessible is “necessary to become a manufacturer producing several million vehicles”.

The manufacturer is also counting on the arrival on the market of its electric truck, Semi, the first model of which was delivered in December, and on its Cybertruck pick-up, which should normally be available during the year.

The action was up 0.3% in electronic trading following the close of Wall Street.


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