Tesla's Strong Earnings Performance

Tesla delivered 1.8 million cars in 2023, which was a significant achievement, although average selling prices experienced a decline. However, the company's automotive gross margin exceeded estimates, largely due to decreased costs associated with goods sold and evolving supply chain dynamics. This improvement suggests that reduced battery demand and lower lithium prices are benefiting Tesla’s margins, allowing for more profitability. The ongoing plans for launching more affordable vehicle models highlight the company's strategy to attract a broader customer base while navigating potential challenges with product cannibalization.