Tesla Reports Robust 2023 Financial Results, Led by Strong Model Y Sales and Soaring Energy Business Profits

January 25, 2024 – Tesla has unveiled its financial results for 2023, revealing a steady increase in revenue and profits despite facing various challenges throughout the year.

According to the report, Tesla’s total revenue for the fourth quarter of 2023 amounted to 25.17billion,representinga396.77 billion, a significant 19% increase from 2022.

In terms of profitability, Tesla reported a GAAP operating profit of 8.9billionfor2023,withthefourthquartercontributing2.1 billion. The company’s GAAP net income stood at 15billionfortheyear,with7.9 billion earned in the final quarter alone. On a non-GAAP basis, Tesla’s net income was 10.9billionfor2023,with2.5 billion recorded in the fourth quarter.

It’s worth noting that Tesla’s fourth-quarter results included a one-time non-cash tax benefit of $5.9 billion, resulting from the reduction of certain deferred tax asset valuation allowances.

The company’s cash position also remained strong in 2023. Tesla generated 13.3billioninoperatingcashflowand4.4 billion in free cash flow for the full year. In the fourth quarter, the company’s operating cash flow was 4.4billion,whileitsfreecashflowstoodat2.1 billion. Tesla’s cash and investments increased by 3billioninthefourthquarter,endingtheyearat29.1 billion.

During the year, Tesla delivered over 1.2 million Model Y vehicles, making it the best-selling car of any kind globally. Despite significant capital expenditures and research and development costs, which reached record highs as the company focused on future growth projects, Tesla’s free cash flow remained robust in 2023.

In addition to its strong financial performance, Tesla also achieved significant milestones in its energy storage and generation businesses. The company installed a total of 14.7 gigawatt-hours of energy storage in 2023, more than doubling its 2022 figure. Profits from its energy generation and storage business nearly quadrupled in 2023, while gross margins from services and other businesses increased from negative 500millionin2019topositive500 million in 2023.

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