Key Highlights
Tesla delivered notable financial results for the fourth quarter, with several key metrics surpassing expectations despite a slight revenue decline year-over-year.
- Adjusted EPS reached $0.50, beating the expected $0.45.
- Gross margin came in at 20.1%, significantly exceeding the expected 17.1%.
- Free cash flow was $1.42 billion, slightly below the expected $1.59 billion.
Financial Performance
Tesla reported $24.9 billion in revenue for the fourth quarter, a 3.1% year-over-year decline and slightly below the expected $25.1 billion. Operating profit stood at $1.41 billion, down 11% year-over-year but surpassing the expected $1.32 billion. The company continues to demonstrate strong financial resilience.
Market Reaction
Following the earnings report, Tesla's shares rose nearly 4% after hours, reflecting investor confidence in the company's financial strength and operational performance despite broader economic challenges.