Focus
1. Tesla's total revenue in the first quarter was $23.3 billion, a year-on-year increase of 24%. Net income attributable to common shareholders was $2.5 billion, down 24% year-over-year.
2. Tesla's total electric vehicle production in the first quarter was 440,800 units, an increase of 44% from 305,400 units in the same period last year. Total deliveries were 422,900 units, up 36% from 310,000 units in the same period last year.
To date, the total mileage of Tesla's FSD Beta system has exceeded 240 million kilometers, and it is constantly increasing.
4. Tesla expects it to maintain a long-term compound annual growth rate of 50% in 2023, producing about 1.8 million vehicles for the year.
The electric pickup Cybertruck is still on track to begin production at the Gigafactory in Texas later this year. In addition, Tesla will continue to develop the next generation of the platform.
Tencent Technology News News on April 20, local time in the United States on Wednesday, electric vehicle manufacturer Tesla released the company's first quarter 2023 earnings report after the US stock market closed.
According to the financial report, Tesla's total revenue in the first quarter was $23.3 billion, a year-on-year increase of 24%; Net income attributable to common shareholders was $2.5 billion, down 24% year-over-year; Non-GAAP net income attributable to common shareholders was $2.9 billion, down 22% year-over-year; Diluted earnings per share attributable to Tesla's common shareholders were $0.73, down 23% year-over-year; Non-GAAP earnings per diluted share attributable to Tesla's common shareholders were $0.85, down 21% year-over-year.
After the earnings report, Tesla shares fell more than 3% in after-hours trading.
First, Tesla's first quarter performance data
1. Total revenue increased year-on-year and net profit declined
Tesla's total first-quarter revenue was $23.329 billion, up 24% from $18.756 billion in the same period last year, compared with $24.318 billion in the previous quarter, higher than analysts' consensus expectations of $23 billion.
Tesla's gross profit for the first quarter was $4.511 billion, down 17% from $5.46 billion in the same period last year, compared to $5.777 billion in the previous quarter. Adjusted gross margin was 19.3%, compared to 29.1% in the year-ago quarter and 23.8% in the previous quarter.
Tesla's first-quarter operating profit was $2.664 billion, down 26% from $3.603 billion in the same period last year, compared to $3.901 billion in the previous quarter, and operating margin was 11.4%, compared to 19.2% in the same period last year and 16% in the previous quarter.
Tesla's adjusted EBITDA for the first quarter was $4,267 million, down 15% from $5,023 million in the year-ago quarter, compared to $5,404 million in the previous quarter.
Tesla's net income attributable to common shareholders was $2.513 billion in the first quarter, down 24% from $3.318 billion in the same period last year, compared with $3.687 billion in the previous quarter, below analysts' consensus expectations of $2.6 billion.
Tesla's diluted earnings per share attributable to common shareholders were $0.73 in the first quarter, down 23% from $0.95 in the year-ago quarter, compared to $1.07 in the previous quarter.
Tesla's first-quarter operating expenses were $1.847 billion, down 1% from $1.857 billion in the year-ago quarter, compared to $1.876 billion in the previous quarter.
2. Electric vehicle production and delivery increased year-on-year
Tesla's total first-quarter electric vehicle production was 440,800 units, up 44% from 305,400 in the same period last year and up from 439,700 units in the previous quarter. Among them, Model S/X production was 19,437 units, an increase of 37% from 14,218 units in the same period last year, but lower than 20,613 units in the previous quarter; Model 3/Y production was 421,400 units, up 45% from 291,200 units in the same period last year and up from 419,100 units in the previous quarter.
Tesla's total deliveries of electric vehicles in the first quarter were 422,900 units, up 36% from 310,000 in the same period last year and up from 405,300 units in the previous quarter. Among them, Model S/X deliveries were 10,695 units, down 27% from 14,727 units in the same period last year, lower than 17,147 units in the previous quarter; Model 3/Y deliveries were 412,200 units, up 40% from 295,300 units in the same period last year and up from 388,100 units in the previous quarter.
3. Company reviews
In the current macroeconomic environment, we see this year as a unique opportunity for Tesla. As many automakers grapple with the challenges of the unit economics of electric vehicle projects, we aim to leverage our position as a cost leader. We are focused on rapidly ramping up production capacity, investing in autonomous driving and automotive software, and sustaining our investment growth.
Given the potential lifetime value of Tesla vehicles in autonomous driving, supercharging, connectivity, and service, our near-term pricing strategy considers the long-term profitability of each vehicle. We expect our product pricing to continue to evolve, and whether we raise or reduce our prices depends on many factors.
Although we implemented price reductions for many models in multiple regions in the first quarter, the rate of decline in our operating margin remained manageable. We expect to continue to reduce our automotive costs, including improving productivity and reducing logistics costs at our newest facility, and continue to focus on operational leverage as we scale.
Our Gigafactory in Lathrop is rapidly increasing the production capacity of energy storage products, and we recently announced plans to build a new Gigafactory in Shanghai. We will also continue to execute on our product roadmap, including the Cybertruck, an electric pickup, the development of next-generation vehicle platforms, autonomous driving, and other AI-enabled products.
Our balance sheet and net income allow us to continue aligning these capital expenditures with our future growth vision. In this environment, we believe it is necessary to move forward to ensure that we lay the right foundations for the best possible future.
4. Cash reserves increased slightly
Tesla's quarter-end cash, cash equivalents and investments increased $217 million sequentially to $22.4 billion for the year ended March 31, 2023, primarily driven by free cash flow of $441 million, partially offset by other financing activities including debt repayment.
2. Financial Summary
1. Total revenue increased year-on-year
In the first quarter of 2023, Tesla's total revenue increased by 24% year-over-year to $23.329 billion. thereinto
- Automotive revenue was $19,963 million, up 18% from $16,861 million in the year-ago quarter, compared to $21,307 million in the previous quarter. Among them, automobile sales revenue was $18.878 billion, compared to $15.514 billion in the same period last year and $20.241 billion in the previous quarter; revenue from the sale of carbon credits was $521 million, compared to $679 million in the same period last year and $467 million in the previous quarter; and car rental services revenue was $564 million, compared with $668 million in the same period last year and $599 million in the previous quarter.
Energy production and storage revenue of $1,529 million, up 148% from $616 million in the year-ago quarter, compared to $1.31 billion in the previous quarter;
Services and other revenue of $1,837 million, up 44% from $1,279 million in the year-ago quarter, compared to $1,701 million in the previous quarter;
Compared with the same period last year, Tesla's total revenue growth in the first quarter of this year was driven by higher vehicle deliveries, other business growth, lower average selling prices year-over-year, and lower negative foreign exchange effects.
2. Operating profit and net profit decreased year-on-year
In the first quarter of 2023, Tesla's operating profit was $2.664 billion, down 26% from $3.603 billion in the same period last year. Operating profit was primarily impacted by higher vehicle deliveries (margins impacted by underutilization of new plants), higher gross profit in the Energy and Services and Other businesses, lower average vehicle selling price year-over-year, higher raw materials, commodity, logistics and warranty costs, higher costs for producing 4680 batteries, and lower credit revenue.
In the first quarter of 2023, Tesla's net profit attributable to common shareholders was $2.513 billion, down 24% from $3.318 billion in the same period last year, compared to $3.687 billion in the previous quarter, missing analysts' consensus expectations of $2.6 billion. Non-GAAP net income attributable to common shareholders was $2,931 million in the first quarter, down 22% from $3,736 million in the year-ago quarter, compared to $4,106 million in the previous quarter.
In the first quarter of 2023, Tesla's diluted earnings per share attributable to common shareholders were $0.73, down 23% from $0.95 in the year-ago quarter, compared to $1.07 in the previous quarter. Non-GAAP diluted earnings per share attributable to common shareholders were $0.85 in the first quarter, down 21% from $1.07 in the year-ago quarter, compared to $1.19 in the prior quarter.
3. Other financial and operational highlights
In the first quarter of 2023, Tesla's total cost of revenue reached $18.818 billion, compared to $13.296 billion in the same period last year and $18.541 billion in the previous quarter. Thereinto:
- Total cost of automotive revenue was $15,755 million, compared to $11,322 million in the year-ago quarter and $15,785 million in the previous quarter. Among them, the cost of vehicle sales was $15.422 billion, compared to $10.914 billion in the same period last year and $15.433 billion in the previous quarter. Car rental costs were $333 million, compared to $408 million in the same period last year and $352 million in the previous quarter.
Cost of energy production and storage revenue was $1,361 million, compared to $688 million in the year-ago quarter and $1,151 million in the previous quarter;
- Cost of revenue from services and other businesses was $1,702 million, compared to $1,286 million in the year-ago quarter and $1,605 million in the previous quarter;
Operating expenses were $1,847 million, down 1% from $1,857 million in the year-ago quarter, compared to $1,876 million in the prior quarter. Research and development expenses were $771 million, compared to $865 million in the year-ago quarter and $810 million in the previous quarter; selling, general and administrative expenses were $1,076 million, compared to $992 million in the year-ago quarter and $1,032 million in the previous quarter; and restructuring and other expenses were no, compared to $34 million in the previous quarter.
Third, the core technology
Autopilot and Full Autonomous Driving (FSD)
Tesla's growing FSD Beta users have had an exponential impact on increasing the system's total mileage. To date, the total FSD Beta has exceeded 240 million kilometers and counting. This level of data collection is unprecedented in the industry. Collecting large amounts of disparate data sets is critical to an AI-based approach, and Tesla believes it is the only way to achieve scalable autonomous driving. In the first quarter, Tesla launched the latest FSD Beta software stack to support on-highway driving.
2. Vehicles and other software
While different Tesla models offer different ranges, acceleration, or vehicle sizes, the company believes Tesla's software experience is top-notch across all models. Even the basic Model 3 offers seamlessly integrated vehicle controls, safety and security features (Sentinel Mode, Dog Mode), as well as a full suite of connectivity and entertainment features (Spotify, other music streaming services, video streaming, 4G), and more to come with the ever-updated software over time. Recently, Tesla launched a local recruitment and employee health and safety platform as part of building a broader Tesla operating system ecosystem.
3. Battery, powertrain and production
Producing profitable electric vehicles is a very challenging endeavor that requires rethinking the way cars are designed and produced. Tesla's efforts to reduce costs are far from over, which is why it has recently taken a series of actions, including announcing the transition to a 48-volt architecture for vehicle electronics (starting with the Cybertruck), increasing penetration of internally designed controllers, using cheaper and more scalable drive units, and further innovation in the manufacturing process. Reducing costs remains a major driver of Tesla's mission.
4. Energy storage
Energy storage product deployments grew 360% year-over-year to 3.9 GWh in the first quarter, driven by ongoing ramp-ups at Gigafactories, which helped them achieve their highest level of deployment. Tesla's 40 GWh Gigafactory in Lathrop, California, has been successful, and there's more room to reach full capacity. This plant will be the first of many. Tesla recently announced the construction of a second 40 GWh gigafactory in Shanghai, with construction to begin later this year.
5. Solar energy
Solar product deployments grew 40% year-on-year to 67MW in the first quarter, but continued to decline during the quarter, mainly due to erratic weather and other factors. In addition, the solar industry is affected by supply chain challenges.
6. Services and other business
In the first quarter of 2023, revenue and gross profit from Tesla's services and other businesses reached record highs. In this segment, used car sales growth remained strong year-over-year with good margins. The Supercharging business, while still a small portion of revenue, will continue to grow as Tesla gradually opens up its charging network to non-Tesla vehicles.
4. Performance outlook
1. Output
Tesla plans to increase production as soon as possible to meet its 50% CAGR target set out in its early 2021 outlook. In some years, Tesla may grow faster, and in others, it may grow more slowly, depending on many factors. By 2023, Tesla expects it to maintain a long-term compound annual growth rate of 50% and produce approximately 1.8 million vehicles for the year.
2. Cash
Tesla has enough liquidity to support its product roadmap, long-term capacity expansion plans, and other expenses. In addition, Tesla will strengthen business management to maintain a strong balance sheet during this period of uncertainty.
3. Profit
While Tesla continues to innovate to reduce manufacturing and operating costs, the company expects hardware-related profits to accelerate over time along with increased software-related profits. Tesla remains confident that its operating margin will remain the highest in the industry.
4. Products
Tesla said the electric pickup Cybertruck is still on track to begin production at its Gigafactory in Texas later this year. In addition, Tesla will continue to develop the next generation of the platform.
5. Stock price changes
On Wednesday, Tesla shares fell $3.72, or 2.02%, to close at $180.59 per share in regular trading on the Nasdaq stock market. At press time, the stock is down 4.84% in after-hours trading and is now trading at $171.85.
Over the past 52 weeks, Tesla shares have peaked at $364.07 and as low as $101.81. Based on Wednesday's closing price, Tesla's market capitalization is about $572.3 billion. (Golden Deer)