Tesla Earnings, Goldman Sachs Pulls Back on Consumer Business, Apple Card’s Future (Daily Update)
Hello everyone.
Apple reports earnings next Thursday (Feb 2nd). We will go over my expectations early next week.
For today's update, we kick things off with Tesla and then switch to Apple Card.
Tesla Earnings
Heading into Tesla’s earnings, there was an increase in anxiety regarding demand for Tesla vehicles. While it was too early to say Tesla faced a demand “problem,” cracks were starting to form in the company's growth story.
Here’s Tesla kicking off its 4Q22 update:
“Q4-2022 was another record-breaking quarter and 2022 was another record-breaking year. In the last quarter, we achieved the highest-ever quarterly revenue, operating income and net income in our history. In 2022, total revenue grew 51% YoY to $81.5B and net income (GAAP) more than doubled YoY to $12.6B.
As we progress into 2023, we know that there are questions about the near-term impact of an uncertain macroeconomic environment, and in particular, with rising interest rates. The Tesla team is used to challenges, given the culture required to get the company to where it is today. In the near term we are accelerating our cost reduction roadmap and driving towards higher production rates, while staying focused on executing against the next phase of our roadmap.”
Thanks to 4Q22 price cuts, some weakness in deliveries, and inflation, core gross margins – excluding ZEV credits and FSD recognition – declined to 22% from 27% the previous year. The concern some have is that
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