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Electric car maker Tesla has made record profits for 2022, despite inflation, price cuts to boost sales, and company boss Elon Musk's erratic leadership.
- Tesla made $US81.5 billion ($115 billion) in revenue in 2022, up 51 per cent, while net profit more than doubled, to $US12.6 billion ($17.7 billion)
- Production rose to 1.36 million cars in 2022, while the company made record deliveries of 1.31 million vehicles
- It made $US3.7 billion ($5.2 billion) from October to December, after quarterly revenue rose 37 per cent, to $US24.3 billion ($34.2 billion)
The company said that, over the last quarter of 2022, it had seen record revenue, operating income and net profit because of price cuts and lower-cost models, outcomes that were better than predicted by analysts.
That helped it make record vehicle deliveries of 1.31 million last year, although production rose by nearly half to 1.36 million vehicles.
Across 2022, revenue rose by half, to $US81.5 billion ($115 billion), while net profit more than doubled, to $US12.6 billion ($17.7 billion), and operating margins rose nearly 17 per cent over the year.
"This margin expansion was achieved through introduction of lower-cost models, build out of localised, more efficient factories, vehicle cost reduction and operating leverage," Tesla said.
The company made $US3.7 billion ($5.2 billion) profit from October to December, up by almost two thirds from the December quarter in 2021, after quarterly revenue rose 37 per cent, to $US24.3 billion ($34.2 billion).
That came despite slowing vehicle delivery and COVID-19 shutdowns in China over the last few months of 2022, which squeezed fourth-quarter profit margins.
On a conference call to discuss the results, a restrained Mr Musk praised the Tesla team for the record results which, he said, came despite "forced shutdowns, very high interest rates and many delivery challenges".
"It was a fantastic year for Tesla, our best ever," Mr Musk said. "All these records were in the face of massive difficulties."
The car maker cut prices in the US and China, its two biggest markets, by up to one-fifth on some models, with investors and analysts speculating the move reflected lower demand because of rising interest rates.
Mr Musk addressed the concerns, saying that demand far exceeds production, and that Tesla had seen its strongest orders for January to date.
"A massive number of people want to buy a Tesla car but can't afford it, but these price changes really make a difference for the average consumer," he said.
The company expects to sell 1.8 million Tesla cars this year, although Mr Musk went further and confidently predicted that 2 million cars could be sold, despite a probable recession and high inflation.
Some listeners were sceptical about that bullish prediction on Twitter.
Tesla also reassured investors that it had a handle on the uncertain economic environment, although it may not have a handle on Mr Musk.
"As we progress in 2023, we know that there are questions about the near-term impact of an uncertain macroeconomic environment and, in particular, with rising interest rates," the company said.
"The Tesla team is used to challenges, given the culture required to get the company where it is today."
The company said it would continue with cost-cutting and planned to increase production with its Cybertruck model on track to start production later this year.
Tesla said it would share details about its next-generation vehicle at its investor day in March.
The company has been beset by turmoil because of chief executive Elon Musk's chaotic takeover of Twitter.
Tesla's share price slumped by nearly 70 per cent last year, with investors accusing the eccentric billionaire of being distracted by the Twitter takeover.
However, Mr Musk defended his use of Twitter to his 127.2 million followers, saying it had helped, not hindered, the Tesla brand.
"My follower count speaks for itself," he said. "I really encourage companies out there, [in] all kinds of ways, to make more use of Twitter."
Shareholders allege that Mr Musk lied when he sent the tweet, costing investors millions of dollars.
Tesla investors and analysts had eagerly awaited the company's conference call with Mr Musk to discuss the results.
"While every quarter is important for Tesla, we would highlight this upcoming call and guidance commentary as one of the most-important moments in the history of Tesla and for [Mr] Musk himself," Wedbush Securities analyst Dan Ives said in a note.
"After experiencing unprecedented hyper-growth over the past few years in the EV market — which was essentially created by [Mr] Musk — now Tesla faces a darker macro in 2023, with fierce competition coming from all angles."
Tesla's share price also fell because sold Tesla shares to fund his takeover of Twitter.
Mr Musk's chaotic takeover saw more than half the workforce sacked at Twitter and the billionaire allowed previously banned users — such as anti-Semitic pop star and entrepreneur Kanye West and former US president Donald Trump — back on the platform.