"It's important to emphasize that this is very much a production-constrained situation, not a demand-constrained situation. The demand is off the hook." - Elon Musk
— Elon Musk
03Detailed Report
TSLA
Tesla Inc
Period
Q4 2023
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 18, 2026
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Executive Summary
In Q4 2023, Tesla Inc. (TSLA) reported impressive financial results with revenue reaching $25.17 billion, a sequential increase of 7.78% and a year-over-year growth of 3.49%. The company achieved record production levels, delivering over 1.8 million vehicles for the year, with a strong annualized production run rate of nearly 2 million in Q4 alone. Net income surged to $7.93 billion, reflecting a year-over-year increase of over 113%, underscoring the company's resilient profitability despite a challenging macroeconomic environment marked by high inflation and interest rates. Management emphasized the strong trajectory of both automotive and energy sectors, positioning Tesla for sustained growth in 2024.
Key Performance Indicators
Revenue
Increasing
25.17B
QoQ: 7.78% | YoY: 3.49%
Gross Profit
Decreasing
4.44B
17.63% margin
QoQ: 6.22% | YoY: -23.18%
Operating Income
Decreasing
2.06B
QoQ: 17.01% | YoY: -47.09%
Net Income
Increasing
7.93B
QoQ: 327.95% | YoY: 113.52%
EPS
Increasing
2.49
QoQ: 329.31% | YoY: 111.02%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $25.17 billion (QoQ +7.78%, YoY +3.49%)
- Gross Profit: $4.44 billion, with a margin of 17.63% (QoQ +6.22%, YoY -23.18%)
- Operating Income: $2.06 billion, reflecting an 8.20% margin (QoQ +17.01%, YoY -47.09%)
- Net Income: $7.93 billion (QoQ +327.95%, YoY +113.52%)
- EPS (Diluted): $2.27
- Free Cash Flow: $2.06 billion
- Cash and Cash Equivalents: $16.40 billion at period end
Management underlined significant CAPEX investments and ongoing R&D efforts, which reached record levels as part of their commitment to innovation and production expansion.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
25.17B
3.49%
7.78%
Gross Profit
4.44B
-23.18%
6.22%
Operating Income
2.06B
-47.09%
17.01%
Net Income
7.93B
113.52%
327.95%
EPS
2.49
111.02%
329.31%
Key Financial Ratios
Gross Profit Margin
Weak
17.60%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Fair
8.20%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Excellent
31.50%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
7.44%
Return on assets is acceptable but below top-tier companies
Return on Equity
Good
12.70%
Return on equity shows solid performance and effective asset utilization
Current Ratio
Healthy
1.73
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.07
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Fair Value
24.92x
P/E ratio in line with market averages
Price to Book
High Premium
12.62x
Very high premium suggests asset-light business model or lofty expectations
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