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Elon Musk, CEO of Tesla, captivates the audience at the Atreju political convention organized by Fratelli d’Italia (Brothers of Italy) in Rome, Italy, on Dec. 15, 2023.
Antonio Masiello | Getty Images
Tesla’s fourth-quarter revenue and profit missed pundits’ estimates, causing the stock to dip almost 6% in after-hours trading. Here are the key numbers:
- Earnings per share: 71 cents, adjusted vs. 74 cents expected by LSEG, formerly known as Refinitiv.
- Revenue: $25.17 billion vs. $25.6 billion expected by LSEG.
Total revenue increased 3% from $24.3 billion a year earlier. Operating margin for the quarter came in at 8.2%, down from the year-ago quarter’s figure of 16% and slightly higher than 7.6% in the prior quarter.
The meager growth in auto revenue was partly due to a reduced average selling price following steep price cuts around the world in the second half of the year. Net income for the quarter more than doubled to $7.9 billion, or $2.27 per share, from $3.7 billion, or $1.07 per share, a year earlier. The increase was mostly due to a $5.9 billion one-time noncash tax benefit.
Tesla said in its 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. The company cautioned investors that it’s “currently between two major growth waves.”
CEO Elon Musk was asked on the earnings call if investors should be uncomfortable with his stated desire to own 25% of Tesla. The question was in reference to a recent tweet, in which Musk said that’s how much voting control he would want before turning Tesla into a “leader in AI and robotics.”
Musk responded by saying he doesn’t want to be in the position to be “voted out by some sort of random shareholder advisory board,” and he floated the possibility of creating a dual-class share structure. Musk highlighted proxy advisory firms Institutional Shareholder Services, or ISS, and Glass Lewis as groups creating challenges, alongside activists that “infiltrate” companies and ”have strange ideas about what should be done.” In mentioning ISS, Musk said he calls the group “ISIS,” referring to the Islamic State.
ISS didn’t immediately respond to CNBC’s request for comment.
When asked about the timeline for production of Tesla’s humanoid robot, called Optimus, executives declined to give any specific guidance.
Musk described Optimus as, “something that I think has the potential to far exceed the value of everything else combined” for Tesla. He claimed that Tesla’s technology developed in its automotive unit translates well to the humanoid robot “because the car is just a robot on four wheels.”
Optimus is “by far the most sophisticated humanoid robot that’s being developed anywhere in the world,” Musk added. Competitors in the market include Boston Dynamics,