Tesla recently released its business figures for the first quarter of 2023, revealing a decrease in revenue by $1 billion compared to Q4 2022 but an increase of 24% compared to Q1 2022. The company generated $23.33 billion in revenues, with $19.96 billion coming from the automotive division. The GAAP net income for Q1 was $2.51 billion, while the adjusted earnings per share reached 85 cents.
The lower revenue was attributed to the worldwide price cuts implemented by the company, which led to an increase in demand but less money per car. However, Tesla’s profitability increased considerably despite the lower revenues, with GAAP gross margin at 19.3%, less than in the previous four quarters. The company cited higher costs for raw materials, logistics, and warranties, along with the reduced average vehicle price, as reasons for the reduced profitability.
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Tesla’s operating profit fell to $2.7 billion in Q1 from a year earlier, resulting in an operating margin of 11.4%, which was lower than the previous four quarters. The company cited the price reductions and higher costs for the decrease in profitability. Nevertheless, Tesla aims to leverage its position as a cost leader in the industry and believes that its operating margins will remain among the highest in the industry.
The company aims to produce 1.8 million electric cars this year, with the carmaker repeating its goal from the previous quarter’s report. Tesla achieved a new record in both production and delivery figures in the first quarter, manufacturing 440,808 and delivering 422,875 EVs. The delivery figures increased by 36% compared to the same period last year, while revenues generated by automotive sales were only slightly higher YoY at $18.88 billion.
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Tesla’s future models, including the Cybertruck, Semi, Roadster 2, “Robotaxi and others,” are not yet included in the report. However, preparations for the Cybertruck are on schedule, with alpha versions already rolling off the production line in Texas. The Semi is already in pilot production, but Tesla did not mention any capacities for the electric truck manufactured in Nevada.
Overall, Tesla’s Q1 report shows lower revenues due to price cuts but higher profitability, with the company aiming to remain a cost leader in the industry while continuing to progress in production and delivery figures.
