Tesla results have arrived

World’s largest automaker, Tesla Inc. (NASDAQ: TSLA), reported Q1 financial results after market close in the US on Wednesday. Elon Musk’s company posted mixed results for the quarter. Let’s take a closer look at how it performed.

Company overview

• Founded: July 1, 2003
• Headquarters: Austin, Texas, United States
• Number of branches: 764 retail stores/galleries and service centers (2022)
• Number of employees: 127,855 (2022)
• Industry: Automotive, renewable energy, artificial intelligence
• Key people: Elon Musk (CEO), Robyn Denholm (chair)

The results

Tesla reported revenue that missed analyst estimate at $23.329 billion vs. $23.596 billion expected. Revenues were up by 24% compared to Q1 2022.

Earnings per share reported at $0.85 per share (down by -21% year-over-year) vs. $0.846 per share estimate.

The automaker produced 440,808 and delivered 422,875 cars in Q1, up by 44% and 36% year-over-year, respectively.

Company commentary

”In the current macroeconomic environment, we see this year as a unique opportunity for Tesla. As many carmakers are working through challenges with the unit economics of their EV programs, we aim to leverage our position as a cost leader. We are focused on rapidly growing production, investments in autonomy and vehicle software, and remaining on track with our growth investment,” Tesla said in a letter to shareholders.

The company also commented on its pricing strategy: ”Our near-term pricing strategy considers a long-term view on per vehicle profitability given the potential lifetime value of a Tesla vehicle through autonomy, supercharging, connectivity and service. We expect that our product pricing will continue to evolve, upwards or downwards, depending on a number of factors.”

”Although we implemented price reductions on many vehicle models across regions in the first quarter, our operating margins reduced at a manageable rate. We expect ongoing cost reduction of our vehicles, including improved production efficiency at our newest factories and lower logistics costs, and remain focused on operating leverage as we scale.

”We are rapidly growing energy storage production capacity at our Megafactory in Lathrop and we recently announced a new Megafactory in Shanghai. We are also continuing to execute on our product roadmap, including Cybertruck, our next generation vehicle platform, autonomy and other AI enabled products.”

”Our balance sheet and net income enable us to continue to make these capital expenditures in line with our future growth. In this environment, we believe it makes sense to push forward to ensure we lay a proper foundation for the best possible future,” the statement concluded.

The stock was down by -2.02% on Wednesday at $180.48 a share before the results were announced.

Share price dropped by around -3% in the after-hours as investors digested the earnings report.

Stock performance

• 1 month: -5.38%
• 3 months: +40.44%
• Year-to-date: +46.83%
• 1 year: -44.48%

Tesla price targets

• RBC Capital: $217
• Barclays: $230
• Wedbush: $225
• TD Cowen: $170
• Deutsche Bank: $250
• Goldman Sachs: $225
• Citigroup: $192

Tesla is the 8^th largest company in the world with a market cap of $576.43 billion, according to CompaniesMarketCap.

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Sources: Tesla Inc., TradingView, MarketWatch, MetaTrader 5, Benzinga, CompaniesMarketCap, Wikipedia