Summary:
Tesla announced its quarterly earnings on Wednesday afternoon, reporting record revenue for the first quarter of the year.
The automaker reported revenue of $23.3 billion USD for the period from January to March 2023, up a whopping 24% year-over-year. Wall Street, meanwhile, had forecasted $23.21 billion in revenue, according to estimates from Refinitiv.
Tesla reported a net income of $2.5 billion (GAAP) for the quarter, with an operating margin of 11.4%. The automaker delivered a record 422,875 vehicles during Q1 2023, up 36% year-over-year. Production, meanwhile increased 44.3% to 440,808 units.
“In the current macroeconomic environment, we see this year as a unique opportunity for Tesla,” the company said in its quarterly update to shareholders.
“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 investments.”
According to Tesla, the Model Y was the best-selling vehicle of any kind in Europe during Q1, and it also topped vehicle sales in the U.S. (excluding pickups). Tesla’s sales this quarter were helped along by the repeated price cuts the automaker has rolled out across the globe in recent months.
“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,” Tesla added.
The company noted that its recent price cuts have led to a slight reduction in its operating margins. Tesla enjoyed an operating margin of 16% during Q4 2022, compared to 11.4% in the most recent quarter.
In addition, Tesla said that factory tooling for the production of its long-awaited Cybertruck is on track and Alpha versions of the all-electric pickup are already being built.
Tesla has $22.4 billion in cash, cash equivalents, and investments as of the end of Q1, up $217 million.
…developing, more to follow