Tesla released its first-quarter earnings report today, following a challenging quarter marked by production and delivery hurdles. The electric vehicle (EV) maker produced 433,371 vehicles and delivered 386,810 vehicles during Q1, falling short of Wall Street analysts’ expectations of 449,080 deliveries and 452,976 vehicles produced.
The difficulties faced by Tesla in Q1 were attributed to various factors, including the initial stages of the updated Model 3 ramp-up at the Fremont factory, shipping disruptions caused by the Red Sea conflict, and an arson attack at Gigafactory Berlin, as stated in the Q1 vehicle delivery and production report.
Tesla reported total revenues of $21.3 billion in Q1 2024, with automotive revenues at $17.3 billion, missing Bloomberg’s analyst consensus of $22.31 billion. The company’s total revenue declined by 9% year-over-year, impacted by a lower average selling price for vehicles, reduced deliveries, and growth in other business segments.
The non-GAAP earnings per share (EPS) for Q1 2024 stood at $0.45, while GAAP EPS was $0.34, below Bloomberg’s analyst consensus of $0.52. Tesla’s operating income decreased year-over-year to $1.2 billion in Q1, resulting in a 5.5% operating margin. The company posted $1.2 billion in GAAP operating income, $1.1 billion in GAAP net income, and $1.5 billion in non-GAAP net income in the first quarter.
Tesla’s cash, cash equivalents, and investments at the end of Q1 2024 totaled $26.9 billion. The company reported a sequential decrease of $2.2 billion in cash, primarily due to negative free cash flow of $2.5 billion, driven by an inventory increase of $2.7 billion and AI infrastructure capex of $1.0 billion.
Despite the lower-than-expected earnings, Tesla investors reacted positively to the report. As of writing, TSLA shares are trading up 5.75% at $153.09 per share.
