The shares increased after Musk said the company would be able to produce two million cars, resulting in earnings of $1.19 vs. $1.13 per share expected, per Refinitiv, and revenue at $24.32 billion vs $24.16 billion expected, per refinitiv.
In the same quarter last year, Tesla announced revenue of $17.72 billion and adjusted earnings of $2.52 per share (adjusted $0.85 in August 2022).
In the fourth quarter of 2022, revenue of $21.3 billion showed a growth of 33% year over year.
$467 million of that came from regulatory credit in the fourth quarter, which increased nearly half from last year in the same period.
In late 2022 and 2023, Tesla had discounts on its cars all over the world, which ignited demand for Tesla. Musk said, “Thus far in January, we’ve seen the strongest orders year-to-date than ever in our history. We’re currently seeing orders of almost twice the rate of production.”
Revenue at Tesla, including fees for out-of-warranty vehicle repairs and others, hit $1.6 billion in the quarter.
In North America, about 400,000 customers could test the FSD beta driver assistance system, FSD, or full self-driving capability, which contained new software features the company had not fully debugged. Tesla recognized deferred revenue of $324 million related to the FSD system.
The driver assistance system is only available for customers who have purchased or subscribed to Tesla’s premium driver assistance package.