Despite a record $97 billion in sales in 2023, Tesla's profitability and free cash flow are declining. Investors are scrutinizing the company's annual 10-K filing for warning flags after a $5.9 billion fourth-quarter accounting gain. Musk's strategic shift to produce more affordable next-gen electric vehicles at Tesla's Texas factory by 2025 is seen as a challenge due to advanced technology integration. Meanwhile, other tech giants like Nvidia, Microsoft, Meta Platforms, Amazon, Apple, and Alphabet are experiencing record-breaking performances.
Key takeaways:
- Elon Musk has lost his position as the world's richest man to Bernard Arnault, CEO of LVMH, after Tesla's market value fell by $200 billion in January.
- Tesla's losses began in Q4 when BYD overtook it as the top electric vehicle maker, and its stock price fell 26% due to major European vehicle market issues and EV reliability worries in cold US weather.
- Despite a record $97 billion in sales in 2023, Tesla saw declining profitability and free cash flow, with Musk's cautionary statements about an impending decrease in sales growth causing a 12% plunge in Tesla shares.
- While Tesla faces challenges, other tech giants, referred to as the "Magnificent Seven" (Nvidia, Microsoft, Meta Platforms, Amazon, Apple, and Alphabet), saw record-breaking performances last week.