{"id":241887,"date":"2023-04-19T17:29:23","date_gmt":"2023-04-19T21:29:23","guid":{"rendered":"https:\/\/www.thedetroitbureau.com\/?p=241887"},"modified":"2023-04-19T17:29:34","modified_gmt":"2023-04-19T21:29:34","slug":"tesla-misses-some-analysts-targets-for-q1","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2023\/04\/tesla-misses-some-analysts-targets-for-q1\/","title":{"rendered":"Tesla Misses Some Analysts\u2019 Targets for Q1"},"content":{"rendered":"\n

On the same day Tesla announced its latest round of price cuts, the company reported its first-quarter earnings results, falling short of analysts\u2019 targets. <\/p>\n\n\n\n

\"Tesla
Tesla’s repeated price cuts during the first quarter ate away at its gross margins.<\/figcaption><\/figure><\/div>\n\n\n\n

The repeated price drops ate into the EV maker\u2019s profit margins, which were expected to come in at 22.4%, according to a Refinitiv poll of 14 analysts; however, the Texas-based automaker\u2019s gross margin only came in at 19.3% \u2014 a number other automakers would celebrate.<\/p>\n\n\n\n

“We expect that our product pricing will continue to evolve, upwards or downwards, depending on a number of factors,” the company said in a letter to shareholders.<\/p>\n\n\n\n

Tesla\u2019s CFO Zachary Kirkhorn promised in January, according to Reuters, that Tesla would not go below automotive gross margins of 20% and an average selling price of $47,000 across models. However, Tesla\u2019s gross margins are usually several percentage points higher than any other automaker. <\/p>\n\n\n\n

“We continue to believe that our operating margin will remain the highest among volume OEMs,” the company said in the letter.<\/p>\n\n\n\n

Hard numbers<\/h2>\n\n\n\n
\"Tesla
Tesla is producing “alpha” versions of its Cybertruck, according to its Q1 earnings report.<\/figcaption><\/figure><\/div>\n\n\n\n

The company did exceed analysts estimates in some areas, including first-quarter revenue where it reported $23.3 billion, compared with consensus estimate of $23.2 billion, according to Refinitiv\u2019s analysts poll.<\/p>\n\n\n\n

The company reported net profit of $2.5 billion, down 24% from the year ago results. The company\u2019s earnings per share was 73 cents, down 23%. The company\u2019s adjusted EBITDA was $4.3 billion, a decline of 15%.<\/p>\n\n\n\n

Tesla pointed to higher costs for raw materials, commodities, logistics and warranties as well as costs of ramping up production of its new 4680 battery cells as one of the factors impacting its Q1 results. While it acknowledge the prices cuts did negatively impact its results this quarter, officials believe there is a bigger picture to see.<\/p>\n\n\n\n

\u201cOur 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,\u201d the company said in its shareholder letter. <\/p>\n\n\n\n

\"Tesla
Tesla says the Model Y was the top-selling car in Europe in Q1, and the U.S. if you don’t count full-size pickups.<\/figcaption><\/figure><\/div>\n\n\n\n

\u201cWe expect that our product pricing will continue to evolve, upwards or downwards, depending on a number of factors. <\/p>\n\n\n\n

\u201cAlthough we implemented price reductions on many vehicle models across regions in the first quarter, our operating margins reduced at a manageable rate. We expect ongoing cost reduction of our vehicles, including improved production efficiency at our newest factories and lower logistics costs, and remain focused on operating leverage as we scale. <\/p>\n\n\n\n

Good news<\/h2>\n\n\n\n

The company did take note of several positives during the quarter, noting tooling for the Cybertruck factory nearly Austin, Texas was on track and it was producing \u201calpha\u201d versions of the long-awaited full-sized pickup.<\/p>\n\n\n\n

It also noted the Model Y was the best-selling vehicle in Europe during the first quarter of the year, and futher claimed it was the top seller in the U.S., if you exclude full-size pickups. The company lumps deliveries of its Model 3 and Model Y together, but it delivered 412,180 of the vehicles during Q1 \u2014 an increase of 40%.<\/p>\n","protected":false},"excerpt":{"rendered":"

On the same day Tesla announced its latest round of price cuts, the company reported its first-quarter earnings results, falling short of analysts\u2019 targets. The repeated price drops ate into the EV maker\u2019s profit margins. Find out more at TheDetroitBureau.com.<\/p>\n","protected":false},"author":4389,"featured_media":231490,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[1908,7,8,5,10,1164,2648,1347],"tags":[990,10590,386,9462,10589],"make":[],"post-state":[],"category_old":[],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/241887"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/4389"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=241887"}],"version-history":[{"count":3,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/241887\/revisions"}],"predecessor-version":[{"id":241890,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/241887\/revisions\/241890"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/231490"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=241887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=241887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=241887"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=241887"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=241887"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=241887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}