On January 29th Eastern Time, Tesla's (TSLA. US) stock price surged 4.19% to $190.93, with the latest total market value of $606.951 billion. Tesla CEO Musk has thus regained his position as the world's richest person.
On the news side, Tesla's 10-K annual report disclosed positive capital expenditures; Catherine Wood's Ark Investment Management has increased its holdings for two consecutive days and has bought $66 million in Tesla stocks.
Tesla 10-K Annual Report
Mentioning China 14 times
Tesla's 10-K annual report disclosed that its capital expenditure for the fiscal year 2023 was $8.9 billion, an increase of $1.74 billion from the previous year's $7.16 billion. The company expects capital expenditures to exceed $10 billion in 2024, with annual capital expenditures between $8 billion and $10 billion in 2025 and 2026.
These capital expenditure plans will mainly be used to launch new products, establish or expand production facilities on three continents, and pilot the development of new battery technologies. In addition, the company will continue to expand its turbocharger network and invest in training and products supported by autonomous driving and other artificial intelligence.
Tesla stated that it expects sales growth to support its operating cash flow, thereby meeting these capital expenditure needs. As long as the macroeconomic situation can support the current sales trend, this self financing capital expenditure state will continue.
It is worth mentioning that the "next-generation platform" mentioned in Tesla's Q4 report has already appeared in the production plan. The Robotaxi in the 2022 annual report has disappeared from the latest annual report.
As of the end of 2023, Tesla's total number of employees was 140473, compared to 127855 at the end of 2022. Tesla emphasizes that 65% of the company's managers are promoted from within, and 43% of management staff have been working in the company for over 5 years.
As of the end of 2023, Tesla's inventory was $13.626 billion, a year-on-year increase of 6.13%. Among them, raw material inventory decreased by 12.17% year-on-year, and finished products increased by 39%.
According to a search by Red Star Capital, Tesla's 10-K annual report mentions China 14 times and Shanghai 20 times.
Tesla China Regional Sales (According to 10-K Annual Report)
In 2023, Tesla's total revenue in the China region was $21.745 billion, an increase of 19.8% from $18.145 billion in 2022. From 2019 to 2021, Tesla's sales in China were $2.979 billion, $6.662 billion, and $13.844 billion, respectively.
Tesla also disclosed that it has completed the gambling agreement signed with the Shanghai Municipal Government that year. The agreement signed between the company and the Shanghai government in 2018 requires Tesla to invest 14.08 billion RMB by the end of 2023, which has been completed so far; Starting from the end of 2023, the annual tax payment needs to reach 2.23 billion yuan. Tesla stated that based on current expenditure and sales levels, it is expected to continue meeting tax requirements in the future.
Tesla Completed Agreement (According to 10-K Annual Report)
Tesla revealed that when they first came to Shanghai to build a factory, the local government offered a 15% preferential corporate income tax rate policy, which has expired by the end of 2023. Starting from 2024, Tesla's Shanghai factory will pay income tax at a national standard of 25%.
Tesla's stock price is declining
"Wood Sister" Buys on dips
Since the beginning of this year, Tesla's stock price has fallen by more than 20%, and the downward trend in stock price is a good opportunity for bottom hunting.
On January 25th, Tesla released its fourth quarter financial report that was lower than market expectations and stated that its sales growth rate for 2024 will "significantly decrease".
After the performance announcement, Tesla's stock price plummeted by 12%, and its daily market value evaporated by $80 billion. Goldman Sachs, Wade Bush, HSBC and other investment banks have all lowered Tesla's target prices. At the same time, Musk was surpassed by LVMH owner Arnold on the Forbes Real Time Rich List, no longer the world's richest man.
"Mu Mu Jie" had previously sold Tesla stocks for three consecutive quarters, but bought in large quantities for two consecutive days after the release of the fourth quarter report. The research team of Ark Investment had previously predicted that Tesla's stock price would reach $2000 in 2027. "Wood Sister" has long been optimistic about Tesla, expressing support for companies that have the potential to change the world.