According to the latest financial report, Tesla's net income for the last quarter more than doubled, reaching $7.93 billion compared to $3.69 billion in the same period the previous year. However, this increase was primarily due to a one-time tax benefit of $5.9 billion for deferred tax assets. Excluding this benefit, the company's net income was $2.49 billion, or 71 cents per share, representing a 39% decrease from the previous year and falling short of analyst estimates of 73 cents per share.

Tesla's quarterly revenue stood at $25.17 billion, a 3% increase from the previous year but still below analyst estimates of $25.64 billion. The company attributed the decline in profits to its decision to lower prices globally throughout the year in an attempt to stimulate sales and gain market share. In fact, the recent fourth-quarter sales growth of almost 20% was largely driven by significant price cuts in the United States, with some models experiencing reductions of up to $20,000.

Despite these efforts, Tesla's sales growth rate in the last quarter was slower than in previous quarters, and its full-year sales growth of 37.7% fell short of CEO Elon Musk's prediction of a 50% growth rate. The company reported delivering 484,507 vehicles in the quarter, with the majority of sales coming from its lower-priced Models 3 and Y. However, Chinese electric vehicle manufacturer BYD surpassed Tesla as the world's top-selling electric vehicle company in the fourth quarter, highlighting the increasing competition in the market.

In a letter to shareholders, Tesla cautioned that sales growth for this year may be "notably lower" than in 2023. The company explained that it is currently in a transitional phase between two major growth waves: the global expansion of Models 3 and Y and the upcoming launch of a next-generation vehicle at its factory near Austin, Texas. Tesla expects the ramp-up of its Cybertruck deliveries to be longer than that of its other models due to its manufacturing complexity.

Furthermore, Tesla anticipates that revenue growth from energy storage will outpace its automotive business this year. The company's gross profit margin for the last quarter fell to 17.6%, down 3.8 percentage points from the previous year, as a result of the price cuts impacting profitability. In 2022, Tesla's gross profit margin was 25.6%, but it dropped to 18.2% in the last year.

In terms of technological advancements, Tesla announced that it released the latest version of its “Full Self-Driving” software during the fourth quarter. This new version utilizes artificial intelligence to assist with steering and pedal control, moving away from the traditional method of "hard coding" all driving behaviors. However, the system still requires owners to be prepared to intervene at any time, as it is not fully capable of driving itself.

Following the release of the financial report, Tesla's stock price experienced a decline of 4.4% in after-hours trading. The company's future growth prospects will heavily rely on the successful launch of its next-generation vehicle and the continued expansion of its energy storage business.