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Tesla (NASDAQ: TSLA) reported for Q1 2023:
Non-GAAP EPS of $0.85, in-line.
Revenue of $23.3B (+24.2% Y/Y)
Capex: $2.07B vs. $1.86B in Q4 2022. FCF: $441M vs. $1.42B in J4 2022.

Tesla management will hold a live question and answer webcast today at 4:30 p.m. Central Time (5:30 p.m. Eastern Time) to discuss the Company’s financial and business results and outlook.

Summary

In the current macroeconomic environment, Tesla sees this year as a unique opportunity. As many carmakers are working through challenges with the unit economics of their EV programs, the company aims to leverage its position as a cost leader. Tesla is focused on rapidly growing production, investments in autonomy and vehicle software, and remaining on track with its growth investments.

Tesla's 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. The company expects that its product pricing will continue to evolve, upwards or downwards, depending on a number of factors.

Although Tesla implemented price reductions on many vehicle models across regions in the first quarter, its operating margins reduced at a manageable rate. The company expect ongoing cost reduction of its vehicles, including improved production efficiency at its newest factories and lower logistics costs, and remain focused on operating leverage as the company scale.

Tesla is rapidly growing energy storage production capacity at its Megafactory in Lathrop and the company recently announced a new Megafactory in Shanghai. The manufacturer is also continuing to execute on its product roadmap, including Cybertruck, its next-generation vehicle platform, autonomy and other AI enabled products.

Tesla's balance sheet and net income enable the company to continue to make these capital expenditures in line with its future growth. In this environment, Tesla believes it makes sense to push forward to ensure it lays a proper foundation for the best possible future.

Highlights

Profitability

• 11.4% operating margin in Q1
• $2.7B GAAP operating income in Q1
• $2.5B GAAP net income in Q1
• $2.9B non-GAAP net income in Q1

Cash

• Operating cash flow of $2.5B
• Free cash flow of $0.4B in Q1
• $0.2B increase in our cash and investments in Q1 to $22.4B

Operations

• Cybertruck factory tooling on track; producing Alpha versions
• Model Y was the best-selling vehicle in Europe in Q1
• Model Y was the best-selling vehicle in the US in Q1 (ex-pickups)

© 2023, Eva Fox | Tesmanian. All rights reserved.

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This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.