The initiator of the price war also fell on the price war. On January 25th, Tesla released an unexpectedly dismal financial report.
.In 2023, Tesla's annual revenue reached a record high, reaching $96.773 billion, a year-on-year increase of 19%. But the operating profit was only $8.891 billion, a year-on-year decrease of 35%; The total gross profit was $17.66 billion, a year-on-year decrease of 15%; The annual gross profit margin was 18.2%, a decrease of 7.35 percentage points from last year.This is the first time that Tesla's annual profit declines in seven years, and the crux of it all boils down to the price war.
In 2023, Tesla took the lead in price cuts and was forced to initiate a series of price reductions, with the starting price of the Model 3 dropping to 229900 yuan. The price war is particularly fierce in Chinese market, with multiple competing models of Model 3 and Model Y being launched, lowering the price bottom line repeatedly, which has also put more pressure on Tesla.
The ongoing price war has heavily dragged on Tesla , that resulted in Tesla lacking confidence in 2024. Tesla has yet to announce its sales target for 2024, and has also made it clear that "the sales growth rate for 2024 may be significantly lower than 2023."
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by- ANDREW SMITH
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