"SAN FRANCISCO -- Tesla's annual profit plunged to its lowest level since the pandemic five years ago as it lost the title of the world's biggest electric vehicle maker to a Chinese rival and boycotts hammered sales. The EV company run by Elon Musk reported Wednesday that net income last year dropped 46% to $3.8 billion. It was the second year in a row of steep declines."
"Musk has been urging investors to focus less on car sales and more on what he considers a bright new future of robotaxis ferrying millions in cars without drivers, or even steering wheels, and robots watering plants and taking care of elderly parents. On a conference call, Musk said Tesla would be closing down production of two models, S and X, in the second quarter this year and converting a Fremont, California, factory to produce its Optimus robots."
"Excluding one-time charges, net income totaled 50 cents per share, compared to analysts' forecasts of 45 cents. "They've got aging product that is less and less competitive as others manufacturers come out with new models, then there is the general brand destruction," said Telemetry analyst Sam Abuelsamid. "Musk's involvement in politics has turned off customers." One bright point was Tesla's gross profit margins, which leapt to 20% last quarter from 16% a year ago."
Tesla's net income fell 46% to $3.8 billion for the year, marking the second consecutive steep decline and the lowest annual profit since the pandemic five years ago. Fourth-quarter net income plunged 61% to $840 million, or 24 cents, with adjusted earnings of 50 cents per share versus analysts' 45-cent forecast. Sales were hit by boycotts and increasing competition that cost Tesla the title of the world's largest EV maker to a Chinese rival. CEO Elon Musk emphasized bets on robotaxis and personal robots, announced plans to end S and X production and convert a Fremont plant to Optimus robot manufacturing. Gross margins rose to 20% and the stock gained about 9% over the past year despite headwinds.
Read at ABC7 San Francisco
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