Shares of Tesla (TSLA) are up more than 5% after the electric vehicle maker reported record revenue for the fourth quarter of 2022 and said that it could produce two million cars this year.
Earnings per share (EPS) came in at $1.19 U.S. versus $1.13 U.S. that was expected on Wall Street, according to Refinitiv data. Revenue totalled a record $24.32 billion U.S. in Q4, which was better than the $24.16 billion U.S. that analysts had forecast.
Tesla reported automotive revenue of $21.3 billion U.S. in the fourth quarter of 2022, representing 33% year-over-year growth.
However, the Austin, Texas-based company’s gross margins came in at 25.9%, the lowest level in the last five quarters. Operating cash flow was down 29% from a year ago and down 36% from the previous quarter at $3.28 billion U.S.
In a conference call with analysts and media, Tesla executives acknowledged that sales prices have “generally been on a downward trajectory for many years,” and said that “affordability” will be needed for Tesla to grow into a company that sells millions of cars each year.
In recent months, Tesla cut prices on its electric vehicles around the world in an effort to spark demand.
The company did not issue any forward guidance, but said in a news release about its Q4 results that “We are planning to grow production as quickly as possible in alignment with the 50% compound annual growth rate target we began guiding to in early 2021.”
The company also said that its new Cybertruck electric pick-up model is on track to start production this year at its manufacturing plant outside of Austin, though it is not likely to reach volume production until 2024.
Tesla’s stock has fallen 54% in the past year to now trade at $144.43 U.S. per share.