Tesla reported 2023 earnings per share of $3.12, down 23% from the record $4.07 in 2023; the company's adjusted earnings before interest, taxes, depreciation and amortization were $16.6 billion, down from adjusted EBITDA in 2022 $19.2 billion was 13% lower.

Despite weak earnings, Tesla's sales were still stronger than expected, with revenue reaching $96.8 billion in 2023, 19% higher than the previous year's record. Tesla reported Q4 revenue of $25.2 billion and earnings of $0.71 per share, missing analysts' average forecasts of $25.6 billion and $0.73.

Investors are more focused on the fact that Tesla's last major growth wave is now a thing of the past. All last year, the company cut prices to boost sales, which led to higher profits. That tactic worked, but it's unlikely to be as effective in 2024, the automaker warned. Given the gloomier sales outlook and the fact that Tesla's next-generation car is likely more than a year away from release, investors are struggling to match Musk's sunny mood.

As a result, Tesla shares fell 6% during extended trading after the market close of the official session on Wednesday, January 24. The stock is already down 16% YTD.

In a rare move, the company decided not to publish a full-year guidance. The company has long projected its average annual growth rate at 50% for several years, which it nearly achieved in 2023, delivering about 1.8 million vehicles. Analysts predicted the automaker's sales would grow about 20% to 2.2 million vehicles, half of what it had in 2023.