Tesla Inc (Nasdaq: TSLA) reported fiscal 2023 first-quarter earnings that declined from the corresponding quarter last year. While the earnings were in line with Wall Street forecasts, the quarterly revenues exceeded expectations. Tesla reaffirmed its production outlook for 2023. The stock of Tesla ended Thursday’s trading session at $162.99, down $17.60 or 9.75% from the previous year. The stock lost more than 60% of its value in 2022. However, so far this year, the stock has appreciated by about 48%.
The Austin, Texas-based company posted first-quarter revenues of $23.33 billion, up 24% from $18.76 billion in a similar quarter of fiscal 2022.
For the latest quarter, the autonomous vehicle manufacturer recorded a net income of $2.51 billion, or $0.73 per share, compared with $3.32 billion, or $0.95 per share, in 1Q 2022.
Excluding stock-based compensation expense and the buy-out of non-controlling interest, among others, the Q1 2023 non-GAAP net income was $2.94 billion, or $0.85 per share, a decrease from $3.73 billion, or $1.07 per share, in the Q1 2022.
Analysts surveyed by Refinitiv had anticipated the company to report earnings of $0.85 per share on revenues of $23.21 billion.
Segment wise:
- Automotive revenues were $19.96 billion, reflecting a surge of 18% from 1Q 2022. However, revenues generated in the form of automotive regulatory credits fell to $521 million in the first quarter, from $679 million in the similar period of fiscal 2022.
- Energy generation and storage segment revenues jumped 148% y-o-y to $1.53 billion. Specifically, the company’s deployment of energy storage systems rose to 3.90 GWh, or about 360% from the previous year.
- Services and other revenues were $1.837 billion in Q1 2023, compared with $1.279 billion in Q1 2022.
During the earnings call, Tesla’s CEO, Elon Musk, clarified that new production facilities running below capacity, margin pressure, higher input costs, a rise in logistics and warranty expenses, and a drop in revenue from environmental credits have all contributed to the decline in earnings compared with the previous year.
Interestingly, the company presented a live telecast of the first-quarter earnings call through Musk-owned Twitter. It can be remembered that Musk sold several billions of dollars worth of Tesla shares last year to fund the $44 billion acquisition of the social media company.
Tesla slashed the prices of its vehicles in December last year and again in the first quarter of this fiscal year (2023). This includes additional discounts announced on Tuesday.
The CEO stated that he continues to expect Tesla to produce 1.80 million vehicles this year. In fact, Musk stated that there is a likelihood of even crossing 2 million vehicles in 2023.
Tesla delivered 422,875 vehicles in the first quarter. The company manufactured 440,808 vehicles in the same period. As per the filing made in January, Tesla anticipates spending between $7 billion and $9 billion in 2024 and 2025, reflecting a rise in capital expenditures of roughly $1 billion in the upcoming two years.
The mixed results are expected to keep the stock of Tesla range bound in the short term.
Technically, the stock of Tesla is declining after facing resistance at 210. The next major support is seen only near 125. Additionally, the stock is trading below its 50-day moving average while the Chaikin money flow indicator is showing a negative reading. Therefore, we anticipate the stock price of Tesla to remain in a downtrend in the near term.
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