Tesla's net income more than doubled last quarter thanks to a big one-time tax benefit, but it warned of "notably lower" sales growth this year.

The Austin, Texas, electric vehicle, solar panel and battery maker said Wednesday that its net income was $7.93 billion from October through December, compared with $3.69 billion a year earlier.

But excluding one-time items such as the $5.9 billion noncash tax benefit for deferred tax assets, the company made $2.49 billion, or 71 cents per share. That was down 39% from a year ago and short of analyst estimates of 73 cents per share according to FactSet.

Chief Financial Officer Vaibhav Taneja said the change in asset valuation would raise the company's taxes.

Tesla reported quarterly revenue of $25.17 billion, up 3% from a year earlier but also below analyst estimates of $25.64 billion.

Profits were off because Tesla lowered prices worldwide through the year in an effort to boost its sales and market share.

Earlier this month Tesla reported that fourth-quarter sales rose by almost 20%, boosted by steep price cuts in the U.S. and worldwide through the year. Some cuts amounted to $20,000 on higher priced models.

Shares of Tesla Inc. fell 6% in trading after the markets closed Wednesday. So far this year, Tesla shares are down about 16%.

Tesla's sales growth rate was slower than previous quarters. For the full year, it sales rose 37.7%, short of the 50% growth rate that CEO Elon Musk predicted in most years. The company reported deliveries of 484,507 for the quarter and roughly 1.8 million for the full year.

In its letter to shareholders released Wednesday, Tesla cautioned that sales growth this year may be "notably lower" than the 2023 growth rate, as it works to launch a more affordable next-generation vehicle at a factory near Austin.

The company, the letter said, is between two big growth waves, one from global expansion of the Models 3 and Y, and a second coming from the new vehicle.

On a conference call with analysts, Musk said Tesla expects to begin producing the new vehicle toward the end of 2025. Revolutionary manufacturing techniques that require innovative equipment will require engineers to be "living on the (assembly) line," Musk said.

After Austin, the company will build the new vehicles at a new plant to be constructed in Mexico, he said.

Seth Goldstein, an analyst with Morningstar Research, said Tesla's results were a mixed bag, with predictions of slowing growth in the near term, but the potential for a growing customer base when the next generation vehicle comes out.

"The affordable vehicle offers Tesla the next wave of strong growth," Goldstein said. "But it looks like it won't begin production until the end of next year at the earliest."

Until the new car ramps up, Tesla is likely to stay in a slower-growth mode, he said, estimating that the new vehicle will cost below $30,000 when it reaches Tesla stores.

Musk was asked if shareholders should be concerned about his comments on X, formerly Twitter, that he is "uncomfortable" with growing Tesla into an artificial intelligence and robotics leader without owning 25% of company shares.

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