Tesla Earnings Slump on Price Cut
Electric car maker Tesla reported a 39% drop in adjusted net income for the final quarter of 2023, to $2.48 billion, or $0.71 per share (-40%), with an adjusted earnings before interest tax depreciation and amortisation (EBITDA) margin down 6.5 points to 15.7%.
The electric carmaker saw its revenues rise by just 3% to under $25.2 billion, weighed down in particular by a reduction in the average selling price of its vehicles, which offset higher volumes delivered.
In addition to lower sales prices and an unfavourable mix effect, Tesla’s profitability was negatively impacted by higher operating expenses, partly due to artificial intelligence and other R&D projects.
