Published , by TJ Denzer
Published , by TJ Denzer
In the field of electric vehicles, Tesla still remains king of the pack, but it’s not without its own issues. The company posted its Q4 2023 earnings results, and not only did it miss revenue and EPS expectations, but Tesla’s adjusted gross margin was at an all-time low when compared to every quarter dating back to Q4 2022. That would mean Tesla is simply not making as much money off its products as it has in quarters past.
Tesla posted its Q4 2023 earnings results in a press release on its investor relations website this week. In said report, Tesla’s adjusted gross margin can be found under the “Adjusted EBITDA margin” metric, where we can see it landed at 15.7 percent for Q4 2023. That was the lowest number the company has seen in a year. Q3 2023 was just above this quarter’s adjusted gross margin with a final number of 16.1 percent. Meanwhile, back in Q4 2022 last year, Tesla’s adjusted gross margin came in at 22.2 percent.
There are a number of reasons Tesla’s profitability has dropped over the last year. One such factor is the rollout of the Cybertruck. The new product has begun to work its way out the door, but not without issue. Tesla was forced to remove a mention of 500-mile range on the three-motor model and the price of the base edition was increased from a starting price point of $39,900 to the current price of $60,990. Elon Musk has also previously shared that production at the company suffered throughout 2023 from upgrades that were rolling out at factories throughout the year.
Ultimately, Tesla’s adjusted gross margins aren’t ridiculously lower than previous quarters, but the continued drop throughout the previous year still feels like cause for concern. Stay tuned for more updates on Tesla and other tech companies as they roll out their latest quarterly earnings results.