Tesla reports record profits, confirms long-term growth outlook

Tesla reports record profits, confirms long-term growth outlook

Tesla reported another round of record quarterly profits Wednesday while confirming its long-term growth outlook in spite of concerns about rising competition and macroeconomic headwinds.

Elon Musk’s electric vehicle (EV) company reported fourth-quarter profits of $3.7 billion, up 59 percent from the year-ago period as revenues jumped 37 percent to $24.3 billion.

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The results were fueled by a 31 percent rise in vehicle deliveries compared with the year-ago period.

The EV giant, which startled investors earlier this month by announcing vehicle price cuts in the United States and Europe, acknowledged challenges such as rising interest rates and an “uncertain macroeconomic environment.”

Tesla’s response includes “accelerating our cost reduction roadmap and driving towards higher production rates,” the company said in its earnings release.

“In any scenario, we are prepared for short-term uncertainty,” said Tesla, while adding that its “relentless cost control and cost innovation” positions it to navigate the year 2023 better than rivals.

The company has described its long-term buildup as seeking to chalk up production growth of 50 percent per year, with some years faster and some years slower.

Tesla employed similar language in its earnings release Wednesday, but said it would