(Boursier.com) — You’re here fell last night by almost 6% after trading on Wall Street. The Texan manufacturer of electric vehicles in fact missed the profit consensus for the fourth quarter and warned of slower volume growth in 2024. For the past quarter, Elon Musk’s group posted revenues of 25.2 billion dollars, up 3.5% year-over-year, while its adjusted earnings per share came in at just 71 cents. The consensus as measured by FactSet was 73 cents in adjusted EPS and $25.6 billion in revenue. The group has certainly doubled its consolidated quarterly net profit, but this is the result of a non-recurring tax gain, while operating results have declined. Operating profit stood at $2.06 billion, compared to a consensus of $2.35 billion.
You’re here, which significantly reduced its prices to support demand, posted a gross margin of 17.6% for the quarter ended at the end of December, compared to 23.8% in the comparable period last year and more than 18% consensus . The margin also declined compared to the previous quarter. Production of the Cybertruck and investments in artificial intelligence, along with other projects, have inflated spending.
Musk confirmed that the group planned to begin production of its next-generation vehicle in Texas in the second half of 2025, but he also suggested that sales growth would slow significantly this year. The billionaire also specified that ramping up production of the new vehicle was going to be difficult. He specifically mentioned the end of 2025 for the start of production. The new model would then be produced in Mexico and then at other international sites.
In the meantime, the group has warned about “significantly lower” growth in sales expected this year, while Tesla intends to focus on the famous new vehicle. “Our vehicle volume growth rate in 2024 is expected to be significantly lower than the rate achieved in 2023, as our teams work on launching next-generation vehicles at our gigafactory in Texas,” Tesla explained.
The manufacturer would therefore be between two phases of expansion, one driven by the Model 3 and Y, and the next which would begin with the new generation platform. Tesla has not confirmed its annual unit sales target for this year, while Wall Street anticipated growth of 22% to around 2.2 million vehicles before the results. For the quarter ended, Tesla posted its weakest growth in three years. The group delivered 1.8 million vehicles as expected over the closed financial year.