Tesla Earnings Disappoint in Q4 as Price Cuts Squeeze Margins
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Tesla's Q4 earnings fell short of analysts' expectations, with revenue of $25.17B, diluted EPS of $0.71, and operating income of $2.06B
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Tesla shares dropped 3% in after-hours trading following the earnings report
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Revenue was up 3% YoY but slightly below expectations, while EPS and operating income were down 40% and 47% YoY
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Tesla met its reduced delivery target for 2022 but at the expense of lower margins, which fell to 8.2% from 16% a year ago
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Price cuts intended to boost sales volume have put pressure on Tesla's profitability