Electric vehicle maker Tesla reported earnings after the bell, beating on both earnings and revenue. Shares were trading approximately flat after hours. Here are the results.
Tesla reported automotive revenue of $21.3 billion in the fourth quarter, representing 33% growth year-over-year. $467 million of that came from regulatory credits in the fourth quarter of 2022, up by nearly half from the prior year in the same period.
Automotive gross margins came in at 25.9%, the lowest figure in the last five quarters. Operating cash flow was down 29% from last year, and down 36% from last quarter, coming in at $3.28 billion.
In a shareholder deck, the company acknowledged that average sales prices have "generally been on a downward trajectory for many years," and said "affordability" would be necessary for Tesla to grow into a company that sells multiple millions of cars annually.
In late 2022 and this year, Tesla cut prices on its cars around the world, upsetting customers in the US and China who recently bought new Teslas at higher prices, and triggering an instant decline in used Tesla prices in the US as well.