Tesla dips more than 8% after Q4 2023 results 🔔

Tesla's shares (TSLA.US) are down by as much as 8% before the opening of the session on Wall Street, following unclear forecasts for 2024 that failed to alleviate investor concerns about a demand slowdown. Earnings for the fourth quarter and gross margins were lower than the average estimates of analysts surveyed by Bloomberg.

Q4 Results and Key Comments

• Adjusted EPS: $0.71, expected $0.73
• Revenue: $25.17 billion, expected $25.87 billion
• Free cash flow: $2.06 billion, expected $1.45 billion
• Gross margin: 17.6%, expected 18.1%
• Capital expenditure: $2.31 billion, expected $2.32 billion
• 2024 vehicle volume growth may be significantly lower than in 2023
• Growth slowdown in terms of vehicle deliveries and profits will be a burden for the stock - Goldman Sachs
• Lack of detailed guidelines for 2024 deliveries likely to overshadow Tesla's results - Citi
• Tesla plans to start production of a new mass-market electric vehicle, codenamed “Redwood,” in the middle of next year

** Tesla drastically reduced the prices of its most popular car models to counteract the negative effects of high interest rates and inflation on consumers. Unfortunately, this negatively impacted margins, which have seen significant quarterly declines.

Financial Dashboard for Tesla, the report doesn't look so weak. However, the results are definitely lower than the comparable Q4 2022. Additionally, Tesla provided much weaker growth forecasts for the current year 2024. Note, net income was reported on a Gaap basis, in the case of Non-Gaap, Tesla's net income was $2.485 billion.

Price Action

Tesla's shares are already down over 8% in pre-market trading. The stock has broken through the support zone around $200-207. Based on the current quotations, shares are expected to start today's session at around $190.60. In the current situation, the next significant support for the downward movement could be even around $160 per share. Bulls will also be limited from above by resistance above $200.

Source: xStation 5