Tesla earnings are out
- EPS $0.45 vs $0.51 expected
- Revenues $21.3 billion vs $22.31B estimate. Last year $23.329 billion. This is the first drop in 4-years.
- Gross margins 17.4%
- Free cash flow -2.531 million
- Adjusted EBITDA 3.384 million versus 3.313 million estimate
Guidance for deliveries for the year was expected at 1.89-1.90M. Do not see an estimate for deliveries in the initial release of data.
- Updated future vehicle lineup to accelerate launch of the new models ahead of previously communicated start of production in 2H of 2025 . (i.e, the company is hinting at more affordable models).
- Regarding new models, they will include more affordable models, will utilize aspects of next-generation platform as well as aspects of our current platforms.
- Committed to companywide cost production.The company announced job cuts of over 10% last week.
- They have ample liquidity to afford expansion plans.
- Global EV sales continue to be under pressure as many carmakers prioritize hybrids over EVs
- Says our vehicle volume growth rate may be notably lower than the growth rate achieved in 2023
- Says we experienced numerous challenges in Q1, from the Red Sea conflict and the arson attack at Gigafactory in Berlin
- To support growth, they said that they have been increasing awareness and expanding vehicle financing programs, including attractive leasing terms for our customers
- In US we produced over 1000 cybertrucks in a single week in April.
- In artificial intelligence software and hardware, will continue to increase our core AI infrastructure capacity in coming months
Despite the miss on the top and bottom line Tesla shares are now up over 7% trading at $155.88, up $11.44 as investors are encouraged by the accelerated pace of new, more affordable models (from 2H of 2024).
Although the price is higher at $155.88 snapshot, the price of TSLA shares were as high as $179.22 on April 9. The next upside target comes in at $160.51 followed by the falling 50-day moving average at $176.71. It would take a move above both to give buyers some confidence.
