Tesla Q1 earnings 2023: total revenue jumps by 47%

Tesla, an American electric vehicle (EV) and clean energy company reported its quarterly earnings on July 19 during the market hour. After the bell, Tesla released its earnings report, revealing a record-breaking quarterly revenue. However, the company’s margins were impacted negatively due to price cuts and incentives. 

Tesla’s performance in the latest quarter exceeded market expectations. The company reported a record revenue of USD 24.93 billion, up by 47% from USD 16.93 billion. There was a 3% decline in operating income compared to the same quarter last year, amounting to USD 2.39 billion. 

The net income reached USD 2.70 billion, a significant jump of 20% from the previous year. Additionally, Tesla achieved an adjusted earnings per share of 91 cents. 

If we do the comparison then, in the first quarter of 2023, Tesla recorded a net income of USD 2.51 billion on USD 23.33 billion in revenue, and in the second quarter of the previous year, the company reported a net income of USD 2.27 billion on USD 16.93 billion in revenue. 

Initially, the share of the company remained stable, but during the earnings call, Elon Musk and other executives faced criticism as they were unable to provide specific specifications and delivery dates for the Cybertruck and a robotaxi-ready vehicle. 

Moreover, they announced that vehicle production would slow down in Q3 due to factory shutdowns for improvements. As a result, the stock ended the session in red. 

Earlier this month, Tesla disclosed that it achieved a total of 466,140 vehicle deliveries during the second quarter, with 479,700 electric vehicles produced. These delivery figures exceeded Wall Street’s expectations.

However, this boost in deliveries contributed to a decline in operating margins, which stood at 9.6%, marking the lowest figure in at least the last five quarters. Moreover, the gross margin for the same period also experienced a decline, reaching 18.2% from 25% the same month last year, the lowest in that time frame. 

Tesla’s core automotive business revenue experienced a significant 46% YoY increase, amounting to USD 21.27 billion, with a sequential rise of around 6.5%. 

Revenue from energy generation and storage, which includes solar installations and backup batteries, also saw substantial growth, rising by 74% YoY to reach USD 1.51 billion. 

Musk revealed during earning calls, Tesla will be spending more than USD 1 billion on Dojo over the next year. Dojo is a supercomputer that Tesla is developing for AI machine learning and computer vision training purposes. 

Musk said, the company’s target of delivering 1.8 million vehicles this year, but anticipates a slight reduction in Q3 production due to factory upgrades during summer shutdowns. In the first quarter of 2023, Tesla’s crossover, the Model Y, achieved the remarkable feat of becoming the best-selling vehicle globally. 

On the exchange, Tesla’s shares began trading at USD 296.04 yesterday and closed the session at USD 291.26 per share, experiencing a decrease in the price of USD 2.08. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.