DETROIT ― Tesla posted record net income in the fourth quarter of last year, and the company predicted that additional software-related profits will keep its margins higher than any other automaker.
The Austin, Texas, maker of electric vehicles and solar panels said it earned $3.69 billion from October through December, or an adjusted $1.19 per share.
That beat estimates of $1.13 that had been reduced by analysts, according to FactSet. The company’s profit was 59% more than the same period a year ago, AP reported.
Revenue for the quarter was $24.32 billion, which fell short of the $24.67 billion that analysts expected.
CEO Elon Musk said that despite price cuts of up to 20 per cent on some of its vehicles announced earlier this month, demand for Tesla products is strong and sales are constrained by production.
Some analysts have said the price cuts were a sign Tesla’s sales are softening. But so far in January, Tesla has seen the strongest orders year-to-date in its history, Musk said on a webcast with analysts.
“We think demand will be good despite probably a contraction in the automotive market as a whole,” he said. “Demand far exceeds production,” Musk said, adding that Tesla is even making small price increases.
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