Tesla just released its Q1 2023 earnings report and the numbers are solid. Tesla again turned a profit, which makes that fourteen quarters in a row in which Tesla has reported a profit. Tesla basically met expectations last quarter.
The main financial details from the Q1 2023 report are as follows:
- $ 23.3 billion in revenue
- $ 0.85 profit per share (Non-GAAP)
And here’s what Tesla was expected to report, according to analysts.
- Profit per share: ~ $0.85 to $0.94 per share
- Revenue: ~ $23.617 billion to $24.048 billion
As you can see, Tesla met the profit expectations but fell a bit short in regard to revenue.
However, in regard to gross margins, Tesla reported that at 19.3%, which means that despite aggressive price cuts, Tesla maintains a strong margin. Tesla states:
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.
Tesla added a comment specifically related to its pricing strategy too:
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.
Tesla also says that it pricing will evolve over time and could trend either upward or downward, so expect more price adjustments in the future.
Tesla previously announced its Q1 2023 production and delivery figures. At 422,875 global deliveries of the Model Y, Model 3, Model S and Model X combined, Tesla beat expectations and set a new all-time delivery record.
You’ll find Tesla’s release in its entirety linked below.
Tesla Q1 2023 Earnings Report
More information to follow from details released on the conference call later today.