It has been about a month since the last earnings report for Tesla (
TSLA Quick Quote TSLA - Free Report) . Shares have added about 8.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Tesla due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Tesla Delivers Yet Another Stellar Show in Q1
Tesla 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 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -13.39% due to these changes.
At this time, Tesla has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Tesla has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.