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New York: Tesla announced Wednesday that it recorded record profits in the fourth quarter of 2022, confirming its long-term growth expectations despite concerns about increasing competition and challenges facing the macro economy.
The company recorded profits of $3.7 billion in the fourth quarter of 2022, an increase of 59% from the profits recorded in the same period a year earlier, and revenues increased by 37% to reach $24.3 billion.
The results were driven by a 31% increase in vehicle shipments compared to the same period in 2021.
The giant company, which surprised investors earlier this month with its announcement of car price cuts in the US and Europe, acknowledged challenges such as rising interest rates and an “uncertain macroeconomic environment”.
“In any scenario, we are prepared for short-term uncertainty,” the company said in a statement, adding that its “continued cost control and innovation cost” makes it able to get through 2023 better than competitors.
The company said that its long-term strategy seeks to increase production growth by 50% annually, at varying speeds.
Tesla shares have fallen about 50% from their level a year ago, reflecting concerns about selling other companies that make electric vehicles, about the slowing economy, and concern that other efforts of Elon Musk will hinder the company, as he sought last year to buy Twitter.