Tesla generates record profits, says it is ready to face short-term uncertainties

Tesla is ready to face the “short-term uncertainties”. ANNA MONEYMAKER / AFP

Elon Musk’s group saw its turnover increase by 37% in the last months of 2022.

Tesla posted record profits in the fourth quarter and, faced with growing doubts about demand for its electric vehicles, says it is ready to face the “short-term uncertainties”. The group saw its turnover climb by 37% over the period, to reach $24.3 billion, and its net profit soar by 59% to $3.7 billion, according to a press release released on Wednesday. “We know there are questions about the near-term impact of the uncertain macroeconomic environment, particularly with rising interest rates”remarks Tesla.

But the company “Is used to challenges“, adds the group. For now, she “accelerating its cost reduction program and targeting higher production rates”. Some observers fear that the economic slowdown, the rise in interest rates, which makes it more expensive to buy a car on credit, and the arrival of multiple competitors on the market for electric vehicles, start-ups like traditional manufacturers, do not hinder the development of Tesla.

Tesla price drop

In 2022, Tesla delivered 1.31 million electric vehicles, which represents a record and a jump of 40% over one year. But the company had set itself the goal of increasing its deliveries in the long term by an average of 50% per year. The group’s share lost 65% in 2022, before recovering a little since the start of the year.

To boost sales, Tesla has lowered prices in recent months, first in China and then in Europe and the United States. A decision considered by some analysts as necessary to defend its market share, by others as a sign of weakness. Tesla for its part says on Wednesday that making its cars more accessible is “necessary to become a manufacturer producing several million vehicles”.

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