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Tesla (TSLA) Q1 Earnings Beat Estimates, Sales Rise 24% Y/Y
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Tesla (TSLA - Free Report) reported first-quarter 2023 earnings of 85 cents per share, down from the year-ago figure of 1.07 cents but outpacing the Zacks Consensus Estimate of 83 cents. This marked an earnings beat for the electric vehicle (EV) behemoth for the ninth time in a row. Higher-than-expected revenues from its Energy Generation/Storage and Services/Other segments resulted in this outperformance.
Total revenues came in at $23,329 million, witnessing year-over-year growth of 24%. However, the top line missed the consensus mark of $23,472 million. Tesla reported an overall gross margin of 19.3% for the reported quarter. The operating margin came in at 11.4%.
Management sticks to its target of around 50% growth in deliveries in the foreseeable future. For 2023, it expects deliveries to reach 1.8 million units.
Tesla’s production and delivery totaled 440,808 and 422,875 vehicles, reflecting a year-over-year jump of 44% and 36%, respectively. The Model 3/Y registered production and deliveries of 421,371 and 412,180 vehicles, respectively, marking year-over-year growth of 45% and 40%, respectively. Production and delivery of the Model S/X totaled 19,437 and 10,695 units, respectively, in the quarter under review.
Total automotive revenues of $19,963 million, jumping 18% year over year. The reported figure also included $521 million from the sale of regulatory credits for electric vehicles, which dipped 23% year over year. Automotive sales, excluding revenues from leasing and regulatory credits, totaled $18,878 million, missing the consensus mark of $20,818 million.
Automotive gross profit came in at $4,208 million, which missed the consensus mark of $4,792 million. Automotive gross margin came in at 21.1%, down from 32.9% reported in first-quarter 2022.
Energy Generation and Storage revenues came in at $1,529 million in first-quarter 2023 compared with the year-ago quarter’s figure of $616 million. The figure beat the consensus mark of $1,071 million. Services and Other revenues were $1,837 million, significantly increasing from $1,279 million a year ago. The figure also topped the consensus mark of $1,595 million.
Operating expenses totaled $1,847 million in the reported quarter, down from $1,857 million incurred in the corresponding period of 2022.
Financials
Tesla had cash and cash equivalents of $22,402 million as of Mar 31, 2023 compared with $22,185 million on Dec 31, 2022. Net cash provided by operating activities amounted to $2,513 million in first-quarter 2023, declining 37% year over year. Its capital expenditure totaled $2,072 million compared with $1,767 million recorded in first-quarter 2022.
Tesla generated a free cash flow of $441 million during the reported quarter, falling 80% year over year. Long-term debt and finance leases, net of the current portion, totaled $1,272 million, down from $1,597 million on Dec 31, 2022.
A few top-ranked players in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , BYD Company Limited (BYDDY - Free Report) and Ferrari N.V. (RACE - Free Report) , all of which sport a Zacks Rank #1.
Geely is engaged in automobile manufacturing and related areas. The Zacks Consensus Estimates for GELYY’s 2023 sales and earnings imply year-over-year growth of around 57.5% and 7.4%, respectively.
BYD is engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries and mobile phone components. The Zacks Consensus Estimate for BYDDY’s 2023 sales implies year-over-year growth of around 175%.
Ferrari is engaged in designing, manufacturing and selling sports cars. The Zacks Consensus Estimates for RACE’s 2023 sales and earnings imply year-over-year growth of around 14% and 19.8%, respectively.
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Tesla (TSLA) Q1 Earnings Beat Estimates, Sales Rise 24% Y/Y
Tesla (TSLA - Free Report) reported first-quarter 2023 earnings of 85 cents per share, down from the year-ago figure of 1.07 cents but outpacing the Zacks Consensus Estimate of 83 cents. This marked an earnings beat for the electric vehicle (EV) behemoth for the ninth time in a row. Higher-than-expected revenues from its Energy Generation/Storage and Services/Other segments resulted in this outperformance.
Total revenues came in at $23,329 million, witnessing year-over-year growth of 24%. However, the top line missed the consensus mark of $23,472 million. Tesla reported an overall gross margin of 19.3% for the reported quarter. The operating margin came in at 11.4%.
Management sticks to its target of around 50% growth in deliveries in the foreseeable future. For 2023, it expects deliveries to reach 1.8 million units.
Tesla, Inc. Price, Consensus and EPS Surprise
Tesla, Inc. price-consensus-eps-surprise-chart | Tesla, Inc. Quote
Key Takeaways
Tesla’s production and delivery totaled 440,808 and 422,875 vehicles, reflecting a year-over-year jump of 44% and 36%, respectively. The Model 3/Y registered production and deliveries of 421,371 and 412,180 vehicles, respectively, marking year-over-year growth of 45% and 40%, respectively. Production and delivery of the Model S/X totaled 19,437 and 10,695 units, respectively, in the quarter under review.
Total automotive revenues of $19,963 million, jumping 18% year over year. The reported figure also included $521 million from the sale of regulatory credits for electric vehicles, which dipped 23% year over year. Automotive sales, excluding revenues from leasing and regulatory credits, totaled $18,878 million, missing the consensus mark of $20,818 million.
Automotive gross profit came in at $4,208 million, which missed the consensus mark of $4,792 million. Automotive gross margin came in at 21.1%, down from 32.9% reported in first-quarter 2022.
Energy Generation and Storage revenues came in at $1,529 million in first-quarter 2023 compared with the year-ago quarter’s figure of $616 million. The figure beat the consensus mark of $1,071 million. Services and Other revenues were $1,837 million, significantly increasing from $1,279 million a year ago. The figure also topped the consensus mark of $1,595 million.
Operating expenses totaled $1,847 million in the reported quarter, down from $1,857 million incurred in the corresponding period of 2022.
Financials
Tesla had cash and cash equivalents of $22,402 million as of Mar 31, 2023 compared with $22,185 million on Dec 31, 2022. Net cash provided by operating activities amounted to $2,513 million in first-quarter 2023, declining 37% year over year. Its capital expenditure totaled $2,072 million compared with $1,767 million recorded in first-quarter 2022.
Tesla generated a free cash flow of $441 million during the reported quarter, falling 80% year over year. Long-term debt and finance leases, net of the current portion, totaled $1,272 million, down from $1,597 million on Dec 31, 2022.
Zacks Rank & Key Picks
TSLA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few top-ranked players in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , BYD Company Limited (BYDDY - Free Report) and Ferrari N.V. (RACE - Free Report) , all of which sport a Zacks Rank #1.
Geely is engaged in automobile manufacturing and related areas. The Zacks Consensus Estimates for GELYY’s 2023 sales and earnings imply year-over-year growth of around 57.5% and 7.4%, respectively.
BYD is engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries and mobile phone components. The Zacks Consensus Estimate for BYDDY’s 2023 sales implies year-over-year growth of around 175%.
Ferrari is engaged in designing, manufacturing and selling sports cars. The Zacks Consensus Estimates for RACE’s 2023 sales and earnings imply year-over-year growth of around 14% and 19.8%, respectively.