Tesla revenue exceeds analyst forecasts by more than $1bn
Tesla enjoyed an upbeat fourth quarter, as its revenue exceeded analyst estimates by more than $1bn.
The car manufacturer, which specialises in electric vehicles (EVs), secured $17.7bn in revenue, with analysts expecting a figure closer to $16.6bn.
Tesla, the brainchild of billionaire entrepreneur Elon Musk, also reported adjusted earnings per share of $2.54, up from analyst forecasts of $2.37.
Earnings were anticipated to be strong, head of transportation and mobility at digital transformation consultancy Publicis Sapient, Alyssa Altman said.
“Tesla is winning in the EV space,” Altman explained, with EVs being promoted as a way for consumers to reduce their individual carbon output. “People will be more willing to purchase an EV and the go-to brand right now is Tesla.”
“Even if someone is a Ford fanatic, when they look to buy an EV, they will compare it to a Tesla.”
However, the manufacturer, like many businesses in the automotive industry, spy sustained supply chain challenges on the horizon.
But this shouldn’t dissuade investors, Altman added.
“In the global supply chain war, Tesla will continue to shine in comparison to their competitors,” she said.
“They can pivot quickly, changing their software and parts configurations to use what is available. With two new factories in Berlin and Austin, they are giving themselves the ability to scale and be nimble.
“While production is not ready everywhere today, the fact that they are getting the facilities ready and are building in flexible and new technologies, will help them continue their rise.”