Electric car company presented bills. But records in accounts do not mean records in company value. Competition overtook the pioneer.
A Tesla presented this Thursday, at the end of the day, its results for the fourth quarter of 2022 and for the year overall.
For the quarter between October and December, the profits increased 59%to 3.4 billion euros.
The electric car company closed last year with a 128% rise in profits. It was 11.5 billion euros, more than double the 5.5 billion euros in 2021.
Revenue and net income exceeded estimates of analysts, highlights the Business Journal.
But these numbers, these expectations exceeded, do not forget what Tesla went through in 2022.
It was the company’s worst year on the stock exchange, on Wall Street. Shares bottomed out, China’s zero-covid policy didn’t help, demand wasn’t as desired and the recession didn’t help, lists XTB.
O Tesla’s market cap was 2.6 times higher at the end of 2021 than at the end of 2022. It fell from 1.1 billion euros to 415 billion euros.
The newspaper Public recalls that Tesla, seen as a pioneer and great innovator in the automotive sector, seemed to have incredible growth rates, with results doubling year after year.
But the optimismtoday, it is seen that it was exaggerated. There was a stock market overvaluation – and then it was always falling.
Going back to the numbers in the report, it turns out that the free cash flow (the money left over after paying all the obligations out of all the money coming in) has fallen to less than half. There are tens of thousands of cars in stock; were not sold.
“Tesla’s End”
Tesla still leader in the electric car sector. It remains the company that sells the most electric cars.
Dough competition open. It comes from China, from Volkswagen, from Nissan, from Hyundai. It comes from BMW, Ford, KIA…
Tesla leads, but for the The confidentialthe current scenario is already the “Tesla’s End”.
In addition to what we have already mentioned, there are other major flaws at Elon Musk’s company, according to the Spaniards: poor industrial design, poor quality, terrible service and “battery” technology.
The real threat to its survival lies at the heart of its business: the strategy of design and execution from Tesla is “just bad”.
Tesla, deep down, seems to be facing the problem that affects many innovative companies: at first it is unique, it seems that it will dominate the market in question – but then appear competitorsthat to even or same surpass (in sales and technology).
A Tesla is no longer alone not market.
And if before, when there was no possible comparison, Tesla cars seemed almost perfect for many people, with the most advanced technology and almost without flaws… Now the other brands are showing that there is obvious deficiencies in their vehicles.
Several flaws in the very structure of its models are presented in El Confidencial. One of them, it should be noted, is the design: there was no need for a car that was all futuristic in its appearance, when buyers were already taking a chance on the very technology of the future. You sensors and monitors started to fail (those responsible forgot that there are atmospheric conditions that condition the cars). And the ability to production also began to be questioned: Tesla does not turn to third parties, it wants to do everything.
The organization Consumer Reportsquoted not The Registeradds a very recent data: opAutopilot is now better at Ford and General Motors than Tesla at autonomous driving technology.
In the US alone, the Tesla’s market share dropped from 79% to 65%in the past two years.
In two years we will see if the “end” really happened.
Nuno Teixeira da Silva, ZAP //