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Tesla reported earnings<\/a> of $7.9 billion in net income on $25.2 billion in revenue during the fourth quarter of 2023. The figures represent an increase in revenue, up from $24.3 billion the same time last year.<\/p>\n<\/div>\n The company\u2019s profit margins improved slightly but are still down compared to last year\u2019s. The company reported margins of 8.2 percent, up slightly from 7.6 percent the previous quarter but down from last year\u2019s 16 percent. <\/p>\n<\/div>\n Tesla used to have historic profit margins, sometimes as much as 20 percent, but a series of price cuts have caused its once-vaunted margins to drop into more earthly territory, worrying investors.\u00a0 <\/p>\n<\/div>\n The company\u2019s profit margins continued to shrink<\/p>\n<\/div>\n<\/div>\n Also fewer Tesla vehicles qualify<\/a> for the federal EV tax credit, thanks to strict new rules for the sourcing of battery materials. The performance version of the Model 3, the long-range version of the Model X, and three versions of the Model Y still qualify for the full $7,500 tax credit, which can now be applied at the point of sale. <\/p>\n<\/div>\n Tesla is also facing the existential challenge of losing its place as the world\u2019s top producer of electrified vehicles to BYD. The Chinese company said it produced 3.02 million EVs in 2023, as compared to Tesla\u2019s 1.81 million cars. However, BYD\u2019s figures include 1.6 million battery-electric cars and 1.4 million hybrid vehicles \u2014\u00a0so Tesla can still claim to be the top producer of pure EVs. <\/p>\n<\/div>\n Hours before the earnings report was released, Reuters<\/em> reported that Tesla plans to start production on an all-new electric crossover vehicle in mid-2025<\/a>. The company has apparently invited suppliers to bid to work on the car and is forecasting producing 10,000 vehicles weekly. Speculation is that this could be Tesla\u2019s long-promised $25,000 vehicle for mass-market consumers. <\/p>\n<\/div>\n \u201cWe are focused on bringing the next generation platform to market as quickly as we can, with the plan to start production at Gigafactory Texas,\u201d Tesla said in a note to shareholders. \u201cThis platform will revolutionize how vehicles are manufactured.\u201d<\/p>\n<\/div>\n The company also predicted that its growth rate in 2024 \u201cmay be notably lower\u201d than it was in 2023 as it works to launch the next-gen vehicle. <\/p>\n<\/div>\n But Musk has been making investors nervous by making statements<\/a> about spinning off Tesla\u2019s artificial intelligence work into a separate company if he is unable to increase the size of his ownership. Such a move would drastically undercut the company\u2019s value, which is largely based on futuristic vibes. <\/p>\n<\/div>\n