Tesla shares fell on Wednesday after releasing first-quarter results that were broadly in line with Wall Street expectations, even though the company slightly beat revenue estimates and fell short of expected profits.
Highlights
- Tesla’s first-quarter revenue of $23.33 billion (€21.27 billion) slightly beat estimates of $23.21 billion (€21.16 billion), while earnings per share of $0.85 (€0.78) exactly matched analyst expectations.
- The company’s first-quarter profit ($2.51 billion, or 2.8 billion euros) fell short of expectations ($2.6 billion) and was down 24% from the same period a year earlier.
- Tesla also said auto regulatory credits – given to automakers to promote zero-emission vehicles – fell 23% from a year ago to $521m (475m euros), while free cash flow collapsed 80% compared to the same period last year. to reach 441 million dollars (402 million euros).
- Tesla’s share price fell about 4.8% in the 15 minutes after the market closed on Wednesday, before starting to recover.
- At 8:30 pm French time (UTC+2), the price rose to $174 (€158), but still down 3.6% from Wednesday’s close.
to monitor
Tesla plans to hold a conference call regarding its earnings during a webcast on Twitter at 11:30 PM PT (UTC+2).
Interesting quote
“Tesla shares initially fell after a small drop in earnings and as it continued to signal further cost-cutting measures,” Oanda analyst Ed Moya said in a note to clients after Wednesday’s earnings announcement.
main context
The drop in earnings was widely expected due to a series of car price cuts that spooked investors. The latest round of price cuts came on Tuesday night — the sixth time the automaker has cut prices on its cars this year, in line with CEO Elon Musk’s vision to turn Teslas into affordable cars for the middle class. The company’s stock has been one of the best performers this year as it recovers from the debacle of 2022 for technology stocks. Tesla’s share price is up more than 67% since the start of the year, after falling about 65% last year on demand concerns.
Translated article from the American magazine Forbes – Author: Nicholas Rayman
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