Tesla reported record earnings and revenue for Q4 2022. Eric Jackson of EMJ Capital believes that Tesla “will be the best performing big cap tech stock this year.”
Tesla is trading higher after reporting record earnings and revenue for Q4 2022. The company continues to stick to its ambitious goal of increasing deliveries by about 50% on average every year for the next few years. It is planned to produce 1.8 million vehicles in 2023, compared to 1.37 million last year. Reacting to the earnings report on CNBC's Closing Bell, Eric Jackson of EMJ Capital said he believes Tesla will be the most profitable big-cap tech company.
“I've said it before that I thought Tesla will be the best-performing big-cap tech stock this year. I still believe that. I thought they'd come through with delivery numbers (guidance) and that's what they did.”
In early January, Tesla came under fire for slashing the prices of its cars around the world. Investors were saddened that the move would hurt margins, overlooking other, more important benefits the company has gained. On this occasion, Jackson replied:
“Tesla is a massive company now. That brings advantages of free cash flow and operating margins. They can take a hit on gross margins this year if they can maintain their leadership. These are right moves. They'll be ahead when things turn around.”
Tesla Q4 financial highlights:
- Net income printed at $3.69 billion versus the year-ago $2.30 billion
- Per-share earnings also climbed significantly from 68 cents to $1.07
- Adjusted EPS came in at $1.19 as per the earnings press release
- Revenue jumped 37% on a year-over-year basis to $24.32 billion
- FactSet consensus was $1.13 a share on $24.67 billion in revenue
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About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
