American automotive giant Tesla finished 2022 with net profits of $12.6 billion, $3.7 billion of which it earned in Q4.
In 2022, total revenue grew 51% to $81.5 billion and net income more than doubled on an annual basis.
A blog on the London-based finance platform cited that Tesla’s “successful strategy of price cuts, combined with the introduction of new models and increased production capabilities, have helped it maintain its dominance in the electric car market”.
The Texas-based manufacturer of electric vehicles and solar panels cut the price of its base Model 3 saloon by £5,500 recently. Edith Reads, a financial analyst at TradingPlatforms.com said that the company’s success in 2022 is a testament to their innovation and commitment to providing customers with quality vehicles at competitive prices.
Despite opening 2022 at close to $400 per share, Tesla shares dropped significantly down to $108 in early 2023. According to Reads, this was due to layoffs, a reshuffling and reorganising of the core components of the network, as well as criticisms from some investors that Elon Musk had his priorities wrong.
In its outlook for the new year, the electric car company said it expects to remain ahead of the long-term 50% CAGR with around 1.8 million cars for the year. In its quarterly update shared recently, it revealed that its operating margin will remain “the highest among volume OEMs”.
Tesla’s Cybertruck remains on track to begin production later this year at Gigafactory Texas. The next generation vehicle platform is under development, and additional details will be shared on the investor day on March 1st.