Tesla's net income more than doubled last quarter, reaching $7.93 billion, largely due to a one-time tax benefit. However, the electric vehicle manufacturer reported lower profits as a result of price cuts and slowing sales growth. Excluding the tax benefit, Tesla made $2.49 billion, which was a 39% decrease compared to the previous year and fell short of analyst estimates.

Tesla's quarterly revenue reached $25.17 billion, a 3% increase from the previous year, but it also fell below analyst expectations. Following the announcement, Tesla's shares fell by 3% in after-hours trading. The company had recently reported a nearly 20% rise in fourth-quarter sales, attributed to significant price reductions in the United States and globally throughout the year. Some models saw price cuts of up to $20,000. However, the sales growth rate was slower compared to previous quarters, and the full-year sales growth of 37.7% fell short of CEO Elon Musk's predicted 50% growth rate.

In the fourth quarter, Tesla delivered a total of 484,507 vehicles, with the majority being lower-priced Models 3 and Y. Chinese electric vehicle company BYD surpassed Tesla as the world's top-selling electric vehicle company during the same period.

In a letter to shareholders, Tesla cautioned that sales growth this year may be "notably lower" than the growth rate predicted for 2023. The company attributed this to the launch of a next-generation vehicle at its factory near Austin, Texas. Tesla expects Cybertruck deliveries to increase throughout the year. Additionally, the company stated that revenue growth from energy storage is expected to outpace the automotive business in 2023.

Despite the positive net income for the quarter, Tesla's gross profit margin fell to 17.6%, a decrease of 3.8 percentage points from the previous year. The company attributed this decline to the price cuts that impacted profitability. For the full year, Tesla reported a net income of nearly $15 billion, including the one-time tax benefit. Excluding the benefit, the company's net income was $10.88 billion, a 23% decrease from 2022. The gross profit margin for the full year dropped from 25.6% in 2022 to 18.2% in 2023.

During the fourth quarter, Tesla released the latest version of its “Full Self-Driving” software to employees and selected customers for testing. The new version utilizes artificial intelligence to assist with steering and pedal control, moving away from manually coding all driving behaviors. However, Tesla emphasized that the system still requires driver intervention at all times.

Overall, while Tesla experienced significant net income growth in the last quarter, it faces challenges with slowing sales growth and lower profitability due to price cuts. The company remains focused on the launch of its next-generation vehicle and expects revenue growth from energy storage to outpace its automotive business in the coming year.