Tesla, led by Elon Musk, has reported impressive financials for the fourth quarter of 2023, with a net income of $7.9 billion and revenue of $25.2 billion, reflecting a 3% growth compared to the same quarter last year. The electric car company achieved a milestone by delivering a record 1.8 million electric vehicles (EVs) in 2023.
Despite these accomplishments, Tesla anticipates a potential slowdown in the growth of vehicle sales in 2024. This caution is attributed to the company's focus on launching a new vehicle platform for more affordable EVs. In 2023, Tesla achieved significant success with over 1.2 million deliveries of the Model Y, making it the best-selling vehicle globally.
Tesla's free cash flow remained robust at $4.4 billion in 2023, even as the company directed resources toward future growth projects, leading to the highest capital expenditures and research and development expenses in its history.
Looking ahead, Tesla is concentrating on swiftly bringing the next-generation platform to market, with plans to initiate production at Gigafactory Texas. This platform is expected to revolutionize the manufacturing process for vehicles. In 2023, the Tesla Fremont factory produced nearly 560,000 vehicles, and Gigafactory Texas commenced Cybertruck production, with an acknowledgment that the ramp-up for the Cybertruck might take longer due to its manufacturing complexity.
The Shanghai Gigafactory resumed normal production rates in Q4, rebounding from scheduled downtime in Q3. Tesla also released the latest Full Self-Driving (FSD) Beta software (V12) to select employees in Q4, followed by a release to customers more recently. The company continues to demonstrate its commitment to innovation and growth in the electric vehicle market.
(With Agency Inputs)