Tesla Inc. TSLA CEO Elon Musk In the company’s fourth-quarter earnings call on Wednesday, it said it could hit its 2023 sales target of 2 million units as price cuts boosted demand.
what happened: “We think demand will be good, probably despite the overall car market shrinking. Fundamentally, price really matters,” Musk said by phone.
Demand is nearly double what it produced in January, and barring external disruptions, sales could reach 2 million units this year, he said.
“We’re not committing to it, just saying it’s a possibility. I think there’s demand for that as well,” Musk said.
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Important reasons: Musk said Terrsa is making “small price increases” in response to strong demand.
Beginning in 2023, Tesla will cut U.S. prices for its vehicles by up to 19.7%. This made both the Model 3 and Model Y eligible for the new $7,500 EV tax credit. Since then, the Model Y has increased in price by $500.
Tesla CFO Zachary Kirkhorn Automotive profit margins fell to a two-year low of 25.9% in the fourth quarter, but are expected to remain above 20%. He said the average price across models would remain at $47,000.
Tesla’s fourth-quarter revenue was $24.32 billion, beating market expectations of $24.16 billion. His earnings per share of $1.19 also beat Wall Street’s estimate of his $1.13.
Vehicle production increased by 44% to 439,701 units and deliveries increased by 31% year-on-year to 405,278 units.
Price action: Tesla shares surged 5.5% to $152.39 in long-term trading after closing 0.4% higher on Wednesday, according to Benzinga Pro data.
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