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Tesla's fourth-quarter financial report disappointed, with a bleak outlook for 2024, causing its stock price to drop below $200.

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Tesla

Tesla announced its financial report for the fourth quarter after trading hours yesterday. Due to price cuts to stimulate sales, the gross profit margin for the fourth quarter of 2023 dropped to 17.6%, the lowest since 2019. At the same time, the company also warned that the growth rate of electric vehicles in 2024 may be significantly lower than that of 2023. Tesla's stock price fell nearly 6% after hours, once again dropping below the $200 mark.

Price Reduction and Increased R&D Expenses, Gross Margin Reduced to 17.6%

Tesla's revenue increased by 3% annually, but the gross margin has been sliding from 23.8% in the fourth quarter of 2022 to 17.6% in the last quarter, with the operating margin slightly rebounding to 8.2%. Despite the increase in vehicle deliveries, the gross margin decline was attributed to price reductions, increased AI and related R&D expenses, as well as Cybertruck manufacturing costs exceeding expectations, falling below Wall Street analysts' expectations.

Warning: Significant Lower 2024 Sales Growth Expected

According to CNBC's report, Tesla stated in an investor presentation that as the company strives to launch the next generation of cars in Texas, the growth in car sales in 2024 may significantly lag behind last year's growth rate. The company cautioned investors that Tesla is "currently between two major growth waves."

This warning also foreshadows Tesla's pessimistic outlook for this year. In fact, Musk has repeatedly warned about the impact of a high-interest rate environment in the U.S. economy, especially on high-priced cars. Coupled with loan rates above 7%, it has had a significant impact on car sales. This is also why Tesla has been lowering prices, hoping to increase sales volume and capture market share.

In the fourth quarter of last year, Tesla's free cash flow reached a high of $2.06 billion, far exceeding the expected $1.45 billion. This not only demonstrates Tesla's cash generation efficiency but also indicates the company's preparation for weathering economic downturns by setting aside cash.

Note: Free cash flow is the "cash that a company can freely utilize," calculated by subtracting capital expenditures from operating cash flow, commonly used as an indicator to evaluate enterprise risks.

Optimus Robot

When asked about the production schedule of Tesla's humanoid robot Optimus, senior management refused to provide any specific guidance. However, Musk stated that Tesla is "very likely to deliver a certain number of Optimus devices next year," expressing optimism about the timeline, but without specifying its functions or costs.

Musk described Optimus as "I think it has the potential to be far more valuable than the sum of all other things Tesla has done." He claimed that the technology developed by Tesla in the automotive sector can be well applied to humanoid robots, as "cars are just four-wheeled robots."

Musk added that Optimus is "the most complex humanoid robot being developed in the world so far." Musk had previously released videos of Optimus folding clothes and picking up eggs on X, confirming that the robot can perform dexterous movements.

Tesla Has Not Sold Bitcoin, Holding 10,800 Coins in Total

After purchasing 48,000 bitcoins in 2021, Tesla sold 4,800 coins in the first quarter of 2021 and 32,400 coins in the second quarter of 2022, with no further transactions since then. Tesla's bitcoin inventory still stands at 10,800 coins, with a book value of $184 million.