Tesla Q4 Earnings and EV Market Shifts, Profits, and Price Cuts
Close this search box.

Tesla Q4 Earnings and EV Market Shifts, Profits, and Price Cuts

Image showcasing 2023 Tesla Model 3 redesign codenamed Highland
  • Tesla Q4 earnings estimates and EV market shifts reveal lower profit margins due to price cuts.
  • Tesla still leads in profit per vehicle compared to traditional automakers.
  • EV sales are on the rise, signaling changing market dynamics.

In the spotlight this week are Tesla Q4 earnings and EV market shifts, as Tesla prepares to release its quarterly financial report, accompanied by Elon Musk’s highly anticipated talk with analysts. The electric vehicle (EV) market is undergoing significant changes, making Musk’s insights particularly compelling. Investors are eager to gain insights into Tesla’s sales projections, earnings, and the eagerly awaited $25,000 Tesla Model 2 launch, all key components of Tesla Q4 earnings and EV market shifts.


However, as Tesla’s Q4 earnings are set to be disclosed on January 24, it’s worth noting that aggressive price reductions throughout the year have contributed to surpassing Q4 delivery estimates and achieving a new record, although these actions have had an impact on margins. Tesla’s dedication to enhancing EV affordability has led to a decline in the average selling price, posing challenges to maintaining profitability as production costs remain relatively stable.

Tesla is one of the few car companies that actually makes money from selling electric cars. In the previous quarter, Tesla made a little over $45,100 on average for each car they sold. Most of these sales, more than 96%, were of the lower-priced Model 3 and Model Y vehicles. The cost to make each electric vehicle was just under $36,680 on average.

Tesla Model Y driving on road near a turn

When we look at the numbers, it’s clear that Tesla currently makes an average gross profit of $8,431 for every car they sell. However, this is a big drop from the peak profit they reached in the first quarter of 2022, when they were making an incredible $17,865 per car. This decline, more than double what they’re making now, is concerning for Tesla shareholders, even though Tesla still outperforms traditional automakers like Ford and GM, who make much less per vehicle.

In the past, Elon Musk could say Tesla would grow by 50% each year, and people believed him. But things have changed now. Tesla has dropped the prices of their popular Model Y in the United States, Europe, and China. Other companies like BYD and Volkswagen are also doing well in the electric car market.


Not everyone is rushing to buy electric cars, especially when they cost more than conventional gasoline-powered ones. In Germany, for example, EV sales went down when the government stopped giving subsidies. This shows that many people don’t want to spend extra money on electric cars.

Tesla is adjusting to these challenges. They’re doing things that regular car companies do, like giving discounts to get more people to buy their cars, slowing down their production, and dealing with problems in getting parts for their cars. Tesla is even taking their Cybertruck on a tour in China to promote it, instead of just relying on its unique design.

Electrify Expo Austin Tesla Cybertruck
Tesla Cybertruck surprise appearance at Electrify Expo in Austin.

Musk did explain that the decline in his company’s earnings is partly due to high-interest rates during a sluggish economy, and he is correct about that. However, the bigger problem is that EV sales, not only in the U.S. but globally, have actually increased in the last quarter, even in the face of the economic challenges Musk mentioned. This indicates a changing landscape in the electric vehicle market, with potential EV buyers now considering other options for their next plug-in vehicle.

Tesla is scheduled to review its fourth-quarter results on January 24, 2024, at 5:30 p.m. ET.



FTC: We use income-earning auto affiliate links. Learn more.



One Response

Leave a Reply

Your email address will not be published. Required fields are marked *




Audi e-Tron EV driving on snowy road in Norway

Norway EV Adoption Was 82% in 2023 — Can the U.S. Learn From It?

Image showcasing Kia EV6 parked in an Electrify America EV charging parking spot and stall

2024 Will Be the Year EV Charging Becomes Convenient & Standardized

Biden-Harris Administration Opens Applications for First Round of $2.5 Billion Program to Build EV Charging in Communities & Neighborhoods Nationwide

Biden Admin Opens First Round of EV Grants

Image of MAHLE system competence in thermal management

Future of EV Batteries: ProLogium & MAHLE's Joint Venture for Solid-State Battery Technology

Image showcasing Heybike Hero all-terrain electric bike that is coming soon

Coming Soon: Heybike Unveils Hero All-Terrain Electric Bike with Carbon Fiber Frame

3 BYD vehicles aerial view through round treed opening to view road, may be soon manufactured in Mexico.

Mexico Is Attracting Chinese EV Factories Like BYD, Alarming U.S. Officials