Tesla shares the top EV seller and other electric car companies stock tumbled on Thursday after the EV maker missed Q4 earnings 2023 revenue and profit targets on Thursday and warned of slower sales this year. Tesla reported Q4 earnings that missed estimates and issued a downbeat full-year production outlook that weighed on its shares. Though CEO Elon Musk did confirm that the company’s next-gen vehicle will be coming in the second half of 2025.
Tesla’s volume growth
On Wednesday, Tesla said during an investor presentation that vehicle volume growth in 2024 “may be notably lower” than last year’s growth rate as the company works toward launching its “next-generation vehicle” in Texas.
Stock update
Along with fall in Tesla shares, South Korean display manufacturer LG Display, known to supply the car displays for Tesla’s Model 3, fell more than 4%. Battery suppliers to Tesla also saw declines. LG Energy Solution fell 3.8%, while Samsung SDI and Panasonic Holdings both declined about 2%.
Tesla’s rivals in Asia also fell. EV makers Nio, Xpeng, and Li Auto were among the largest losers on the Hang Seng index, with Nio plunging over 7%. Shares of Xpeng lost 6.05% while Li Auto fell 4.47% in early trade.
BYD sales
BYD which surpassed Tesla as the world’s top-selling maker of EVs in the fourth quarter of 2023 fell about 2%.
On Jan. 2, the Chinese EV maker reported sales of about 526,000 vehicles for the quarter, compared to Tesla’s figure of about 484,000.
However, Tesla was still the top seller of EVs on an annual basis, delivering more than 1.8 million vehicles to customers in the year ended December 2023, compared to BYD’s figure of just under 1.6 million.
Tesla’s disappointing results
Elon Musk’s carmaker is a bellwether for the electric vehicle industry.
Tesla shares are trading lower after its disappointing results, while other EV makers in Asia fell due to its downbeat production outlook for the year.
Tesla Q4 2023 revenue increased by 3% to $25.17 billion, but was lower than the $25.6 billion expected by LSEG, formerly Refinitiv.
Tesla’s earnings per share for the fourth quarter came in at 71 cents, compared to 74 cents expected by LSEG.
Net income for the q4 was more than doubled to $7.9 billion, or $2.27 per share, with the increase attributed mostly to a one-time noncash tax benefit of $5.9 billion.
The figure was also more than double the $3.7 billion, or $1.07 per Tesla share recorded in the same period a year earlier.
