Tesla surprises with its earnings in Q1 2023

Tesla published its financial results for the first quarter of 2023. Although they fell short of Wall Street’s expectations – they expected $23,617 million and the company reported $23,300 million – they surprise with their huge profit per car sold: 19.3%. A huge figure, much higher than any other car manufacturer. And it attracts attention, first of all, because of the price reduction that they announced in early January.

“Our short-term pricing strategy is based on a long-term view of the revenue potential of each vehicle sold, including the potential value of a Tesla vehicle in terms of range, boost, connectivity and services. We expect our prices to continue to evolve. up and down, depending on a number of factors.

“Despite the fact that in the first quarter of 2023 we implemented price cuts for various models of our vehicles in different regions, our operating margins declined at a manageable pace. We expect further reductions in production costs for our vehicles due to improved production efficiency to our new plants Also due to lower logistics costs We continue to focus on operating leverage as we continue to expand

While Tesla’s gross revenue was significantly higher compared to the first quarter of 2022 – $18.756 million vs. $23.329 million – net income is down 24%. If in the first quarter of 2022 there were 3,318 million, then in the first quarter of 2023 – 2,513 million. This change is in line with Tesla’s desire to get closer to more consumers by lowering prices. The market did not like the latest information.

Despite this, Tesla remains the world’s largest electric vehicle manufacturer. They expect to sell about two million vehicles during 2023, and in the first quarter of this year they broke records for unit deliveries.