Tesla reported automotive income of $21.3 billion within the fourth quarter, representing 33% development year-over-year. $467 million of that got here from regulatory credit within the fourth quarter of 2022, up by almost half from the prior 12 months in the identical interval.

Electrical car maker Tesla reported earnings after the bell, beating on each earnings and income. Shares rose greater than 5% after hours after CEO Elon Musk mentioned the corporate would possibly be capable of produce 2 million vehicles this 12 months. Listed here are the outcomes.

Automotive gross margins got here in at 25.9%, the bottom determine within the final 5 quarters. Working money circulation was down 29% from final 12 months, and down 36% from final quarter, coming in at $3.28 billion.

In a shareholder deck, the corporate acknowledged that common gross sales costs have “typically been on a downward trajectory for a few years,” and mentioned “affordability” can be obligatory for Tesla to develop into an organization that sells a number of hundreds of thousands of vehicles yearly.

In late 2022 and this 12 months, Tesla minimize costs on its vehicles around the globe, upsetting prospects within the U.S. and China who not too long ago purchased new Teslas at greater costs, and triggering an on the spot decline in used Tesla costs within the U.S. as nicely.

The worth cuts appear to have sparked demand, nevertheless. Talking on a name with shareholders and analysts on Wednesday, CEO Elon Musk mentioned, “Up to now in January we have seen the strongest orders year-to-date than ever in our historical past. We’re at present seeing orders of just about twice the speed of manufacturing.”

One analyst requested Musk why Tesla’s steering for manufacturing was simply 1.8 million in 2023 after the corporate has been ramping up manufacturing at its new factories.

Musk replied, “We’re saying 1.8 as a result of there all the time appears to be some friggin’ pressure majeure factor that occurs someplace on Earth. We do not management if there’s earthquakes, tsunamis, wars, pandemics, and many others. If it is a clean 12 months, with out some massive provide chain interruption or huge drawback we’ve the potential to do 2 million vehicles this 12 months. I believe there can be demand for that, too.”

The corporate didn’t concern new steering, however reiterated in its earnings launch, “We’re planning to develop manufacturing as shortly as doable in alignment with the 50% compound annual development price goal we started guiding to in early 2021.”

Shareholders requested a query about how Musk plans to safeguard Tesla’s model and popularity from any backlash ensuing from his political statements, and new job because the CEO of Twitter, the social media firm he acquired in October 2022. Musk replied by selling Twitter as an effective way to attach with prospects:

“I’ve bought 127 million followers. And it continues to develop quickly. That is that implies that I am fairly well-liked. I won’t be well-liked with some individuals. However for the overwhelming majority of individuals, just like the follower rely speaks for itself. [I have one of] essentially the most interactive accounts, social media accounts, perhaps on this planet, actually on Twitter, and that really predated the acquisition. So Twitter is definitely an extremely highly effective device for driving demand for Tesla. And I actually encourage firms on the market of every kind automotive or in any other case to make extra use of Twitter and to to make use of their Twitter accounts in methods which are fascinating and informative, entertaining, and it’ll assist drive gross sales simply because it has with Tesla.”