STORY: Tesla beat Wall Street targets for fourth-quarter revenue and profit on Wednesday despite a sharp decline in vehicle profit margins, as it sought to reassure investors that it can cut costs and continue to generate cash as competition intensifies in the year ahead.
Acknowledging concerns about the uncertain economic environment and rising interest rates, Tesla said it is "accelerating our cost reduction roadmap and driving towards higher production rates," adding, "In any scenario, we are prepared for short-term uncertainty."
Tesla has outperformed the industry and increased sales and profit to records in recent years, weathering the pandemic and global supply-chain issues better than rivals.
But its recent, steep global price cuts mark a move toward stimulating growth at the expense of profit margins.
Tesla shares barely budged in extended trading.
The company's stock posted its worst drop in its history last year, hit by demand worries and CEO Elon Musk's acquisition of Twitter, which fueled investor concerns he would be distracted from running Tesla.