Photo/Zhang Jian (NBD)

Tesla (TSLA) reported fourth-quarter earnings and revenue that missed analysts' expectations on Wednesday, as automotive revenue grew just 1% year-over-year. Shares of the company fell nearly 6% in after-hours trading.

Adjusted earnings per share were 71 cents, below the LSEG (formerly Refinitiv).

Total revenue increased 3% from $24.3 billion in the same quarter last year. Operating margin was 8.2%, down from 16% a year ago and slightly above the previous quarter's 7.6%.

The slower growth in automotive revenue was partly due to a global price reduction in the second half of the year that led to a decline in average selling price. Net income more than doubled from $3.7 billion (or $1.07 per share) a year ago to $7.9 billion (or $2.27 per share) in the quarter. This was primarily due to a one-time non-cash tax benefit of $5.9 billion.

Tesla said that its 2024 vehicle sales growth "could be significantly lower" than last year's growth rate as the company ramps up production of its "next generation of vehicles" in Texas. The company warned investors that it is "between two major growth waves."

“Our observation is generally that Chinese car companies are the most competitive car companies in the world,” Musk said Wednesday, during Tesla's earnings call. “If there are no trade barriers established, they will pretty much demolish most other car companies in the world,” he continued.