Tesla on Wednesday posted record net income in the fourth quarter of last year, and the company predicted that additional software-related profits will keep its margins higher than any other automaker.
The Austin, Texas, maker of electric vehicles and solar panels said it made $3.69 billion from October through December, or an adjusted $1.19 per share.
That beat estimates of $1.13 that had been reduced by analysts, according to FactSet.
The company's profit was 59% more than the same period a year ago.
Revenue for the quarter was $24.32 billion, which fell short of the $24.67 billion that analysts expected.
On Jan. 13, the company cut prices in the U.S. and China, its two biggest markets, by up to 20% on some models, leading many analysts to believe that demand had fallen due to high prices and rising interest rates.
Indians comprise largest share of homebuyers in Central Texas: Report
'Would be silly': Musk refutes claims of building private airport in Austin
US Defense Secretary Lloyd Austin positive for Covid for second time
Thousands in US's Texas off power amid freezing temp due to Arctic blast
Tesla CEO Elon Musk may build his own airport outside of Austin: Report
Elon Musk's 'impulsive' use of Twitter seizes spotlight in Tesla trial
Investment bank Goldman Sachs to partially retreat from consumer banking
IBM announces layoffs amid tech slowdown, to cut global workforce by 3,900
New Twitter whistleblower says privacy lapses continued into Musk era
Boeing loses $663 mn in Q4 despite higher revenue amid supply chain problem
Tesla said in its investor letter Wednesday that it would produce about 1.8 million vehicles this year, ahead of a predicted 50% annual growth rate.
But the outlook section of the letter didn't give an estimate of deliveries for the year.
Previously Tesla has said its deliveries would grow at a 50% annual rate most years.
Morgan Stanley analyst Adam Jonas wrote in a note to investors early Wednesday that demand is a problem for the company.
In our view, the price cuts are indeed a response to slowing incremental demand relative to incremental supply, he wrote.
Tesla also said it has rolled out its Full Self-Driving software to about 400,000 users, and that it recognised $324 million from Full Self-Driving software during the quarter.
Despite its name, Full Self-Driving cannot drive itself, and Tesla warns drivers that they must be ready to intervene at any time.
The company said it knows there are questions about macroeconomics in the face of rising interest rates.
In the near term we are accelerating our cost reduction roadmap and driving towards higher production rates, while staying focused on executing against the next phase of our roadmap, the letter said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)