Tesla net income 2014-2023
Net income attributable to Tesla’s common stockholders was nearly 15 billion U.S. dollars, while net loss related to noncontrolling interests amounted to 23 million U.S. dollars in 2023. This was the fourth year the company turned a full-year profit, after reaching that goal in 2020. The fiscal year end of the company is December, 31st.
Focus on innovation drives costs
2020 was the first time that Tesla turned a full-year profit. Previously, net losses had begun to accelerate in 2014, and so did research and development (R&D) expenses. Between 2014 and 2023, Tesla’s research and development expenses increased more than six-fold from about 465 million to almost four billion U.S. dollars. The company's R&D intensity peaked at 12 percent in 2017, a striking value compared to GM's five percent. Tesla's high R&D spending was largely due to the focus on innovative technologies, including electric vehicle batteries and charging infrastructure. In addition to these costs, the company also had to invest significantly more capital than expected towards ramping up production of its Model 3 and Model Y. As a result of increasing demand for Model 3 batteries, Tesla has also begun pouring money into Gigafactory plants in Shanghai, Texas, and Berlin-Brandenburg. Tesla's earnings topped estimates in 2023 with net income reaching nearly 15 billion U.S. dollars for the first time.
Cost trend
Tesla's selling, general, and administrative (SG&A) expenses jumped from 1.4 billion U.S. dollars in 2016 to more than 2.4 billion U.S. dollars in the following year. SG&A expenses increased moderately to reach around 4.8 billion U.S. dollars the most recent fiscal year.
