{"id":47919,"date":"2023-04-21T09:03:39","date_gmt":"2023-04-21T13:03:39","guid":{"rendered":"http:\/\/autosector.com\/?p=47919"},"modified":"2023-04-21T09:03:39","modified_gmt":"2023-04-21T13:03:39","slug":"tesla-q1-2023-earnings-call-takeaway-recap","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=47919","title":{"rendered":"Tesla’s Q1 2023 Earnings Call Takeaway Recap"},"content":{"rendered":"

This article comes to us courtesy of\u00a0EVANNEX<\/a>, which makes and sells aftermarket Tesla accessories. The opinions expressed therein are not necessarily our own at\u00a0InsideEVs<\/a>, nor have we been paid by\u00a0EVANNEX\u00a0to publish these articles. We find the company’s perspective as an aftermarket supplier of Tesla accessories interesting and are happy to share its content free of charge. Enjoy!<\/em><\/p>\n

Posted on<\/span>\u00a0EVANNEX on April 21, 2023,\u00a0by<\/span>\u00a0Peter McGuthrie<\/p>\n

Tesla<\/a> held its Q1 2023 earnings call on Wednesday, including questions from shareholders and crucial financial details from the first three months of the year. Amidst looming concerns about how price cuts might affect margins, Tesla managed to reach Wall Street earnings expectations, posting yet another profitable quarter.<\/p>\n

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Above: A Tesla Model Y (Image:\u00a0Casey Murphy<\/a>\u00a0\/ EVANNEX).<\/em><\/p>\n

In the first quarter, Tesla met Wall Street expectations of $0.85 earned per share (non-GAAP), as reported by\u00a0electrek<\/em><\/a>. The automaker reported $23.3 billion in Q1 revenue, missing Wall Street expectations by about $300 million. Still,\u00a0electrek\u00a0<\/em>also\u00a0<\/em>points out that Tesla reported a 19.3-percent gross margin on its\u00a0electric vehicles<\/a>\u00a0in the quarter, remaining the industry leader despite price cut fears.<\/p>\n

Tesla also released its Shareholder\u2019s Letter on Wednesday, pointing to the accomplishment of maintaining such a high gross margin while reducing prices.<\/p>\n

\u201cAlthough we implemented price reductions on many vehicle models across regions in the first quarter, our operating margins reduced at a manageable rate,\u201d Tesla wrote in the letter. \u201cWe 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.\u201d<\/p>\n

During the earnings call, Tesla also pointed out other accomplishments and hosted questions from shareholders. CEO Elon Musk<\/a>\u2019s opening remarks noted the Model Y becoming the best-selling vehicle of any kind in Europe, as well as the best-selling non-pickup vehicle in the U.S. Musk also said that Tesla\u2019s Full Self-Driving beta has crossed the 150 million-mile mark.<\/p>\n

The call was hosted by Tesla executives including VP of Investor Relations Martin Viecha, CFO Zachary Kirkhorn, Senior VP of Powertrain and Energy Andrew Baglino, and VPs of Supply Chain Karn Budhiraj and Roshan Thomas. Analysts from several investment firms also participated in the call including Piper Sandler\u2019s Alex Potter, Goldman Sachs\u2019 Mark Delaney, Morgan Stanley\u2019s Adam Jonas and more.<\/p>\n

Baglino noted that Tesla still plans to gradually ramp up Cybertruck<\/a> production next year. Musk added that the production of the futuristic vehicle would not be “made in the way that other cars are made,” saying that it would take time to ramp \u2014 despite an “indiscernible” amount of demand.<\/p>\n

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Tesla also touched on its energy storage business in a question from shareholder Jeffrey L. on\u00a0Say Technologies<\/a>, a platform where investors can submit questions prior to the call. Jeffrey asked if Tesla still believed its energy business would be bigger than its automotive business, to which Musk responded that auto revenue may always remain higher \u2014 though energy will be needed increasingly down the road.<\/p>\n

\u201cYes, I should just clarify like bigger than auto from the standpoint of like total Gigawatt-hours deployed,\u201d Musk said in response. \u201cSo, it\u2019s possible automotive revenue may be higher, but GWh I think will be probably higher with stationary storage. If you just look at what’s needed to transition the world to a sustainable energy economy, there is more stationary energy storage needed than there is mobile energy storage.\u201d<\/p>\n

A live webcast of the earnings call was hosted by Tesla on\u00a0<\/em>YouTube<\/em><\/a>\u00a0(as seen below), where users can still listen to audio from the call. Additionally, you can view a full transcript of the call over at\u00a0<\/em>Seeking Alpha<\/em><\/a>.<\/em><\/p>\n

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