Electric vehicle (EV) manufacturer Tesla Inc on Wednesday said the company posted record net income in the fourth quarter of last year and projected additional software-related profits will keep its margins higher than its counterparts.
The Texas-based electric vehicles and solar panels maker said it made $3.69 billion from October through December, or an adjusted $1.19 per share, according to the news agency AP report. The company surpassed the estimates of $1.13 that had been reduced by analysts, according to FactSet, the report added.
The EV maker's profit was 59 per cent more than the same period a year ago. However, the revenue for the quarter was $24.32 billion, which fell short of the $24.67 billion estimated by analysts.
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Earlier, the company slashed prices in two of its biggest markets, including the US and China by up to 20 per cent on some models. This made analysts believe that demand had fallen due to high prices and rising interest rates.
In the investor letter on Wednesday, the company said it would produce about 18 lakh vehicles this year ahead of a predicted 50 per cent annual growth rate. However, the outlook section of the letter didn't offer any information about estimate deliveries for the year.
Tesla earlier said its deliveries would grow at a 50 per cent annual rate most years.
Morgan Stanley analyst Adam Jonas in a note to investors on Wednesday highlighted demand is a problem for the company. He stressed that the price cuts are indeed a response to slowing incremental demand relative to incremental supply.
Tesla also rolled out its full self-driving software to about 4,00,000 users, and said the company recognised $324 million from full self-driving software during the quarter.
It is to be noted that full self-driving cannot drive itself, and Tesla warns drivers that they must be ready to intervene at any time. The company said it knows there are questions about macroeconomics in the face of rising interest rates.