Tesla Posts Highest Profits Ever Despite Concerns About Musk’s Twitter Purchase Causing Brand Risk

Tesla Record financial performance, which exceeded expectations despite concerns about the recent purchase Twitter By Elon MuskThe electric automaker’s chief executive.

Tesla boasted revenues of $24.32 billion for the fourth quarter, surpassing analysts’ expectations of $24.16 billion and reflecting a 37% year-over-year increase. The total gross profit was $5.78billion, an increase of 19% over the previous year. The full-year metrics saw an increase of 51% and 53% respectively.

“In the last quarter, we achieved the highest-ever quarterly revenue, operating income and net income in our history,” According to the company, earnings report. “As we progress into 2023, we know that there are questions about the near-term impact of an uncertain macroeconomic environment, and in particular, with rising interest rates. The Tesla team is used to challenges, given the culture required to get the company to where it is today.”

Tesla shares rose 8.6% on Thursday afternoon. The company released its earnings report shortly after the bell. Despite this, shares have fallen almost 50% in the past year. This is despite outperforming the S&P 500 Index as well as the technology-heavy NASDAQ Composite.

“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 company went on. “In any scenario, we are prepared for short-term uncertainty, while being focused on the long-term potential of autonomy, electrification and energy solutions.”

After Musk’s significant challenges, the strong earnings news is a result. pressure His acquisition of Twitter by investors has drawn criticism. The move was seen as a distraction by the billionaire entrepreneur from his work at Tesla, a publicly traded automaker. According to a survey, net favorability for Tesla among Democrats fell by 20.3% between October-November, the acquisition timeframe. survey Morning Consult reported that the net favorability of Republicans rose 3.9% in the same time frame.

One investor asked Musk asked whether the brand damage caused by the acquisition had affected Tesla’s demand during an earnings conference. Musk replied by checking his Twitter account to see that he has 127 million followers. He claimed that this is a result of the acquisition. “reasonably popular” Other than “a few people” complaining. “I think Twitter is actually an incredibly powerful tool for driving demand for Tesla,” He stated. “And I would really encourage companies out there of all kinds, automotive or otherwise, to make more use of Twitter and to use their Twitter accounts.”

Tesla has been before announced Vehicle production in the fourth quarter was over 439,000, while vehicle deliveries were at 405,000. The metrics were up 47% and 40% respectively for the whole year. “supply chain related challenges.” Musk recently said Tesla has “excellent demand” And expects to “sell every car that we make for as far into the future as we can see.”

The brand’s strong performance comes despite logistics bottlenecks These factors have led to increased production costs across the globe. Musk claimed last summer, that the past two decades have been an “absolute nightmare” for disruptions and called the company’s Berlin and Austin facilities “gigantic money furnaces.” Tesla was also helped by public policies like the Inflation Reduction Act. includes $7,500 tax credit for new domestically manufactured electric vehicles and $4,000 for used.