Tesla’s first-quarter revenue saw a year-over-year increase while its profits dropped, prompting its shares to fall about 3.5% after market-close Wednesday.
The company reported generating $23.33 billion in overall first-quarter revenue, increasing 24% compared to the same period in the prior year. Of that total revenue figure, it included $19.96 billion of automotive, $1.53 billion of energy generation and storage and $1.84 billion of services and other revenues. Refinitiv estimates had put Tesla’s first-quarter revenue lower, at $23.21 billion.
For net income, Tesla said it fell 24% from $3.32 billion in 2022’s Q1, coming in at $2.51 billion.
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Diluted earnings-per-share (EPS), meanwhile, met Refinitiv expectations. Tesla, run by Elon Musk, saw diluted EPS of $0.85, marking a 21% plunge year-over-year.
The company’s operating margin was 11.4%. It has experienced a 779 basis-point drop year-over-year from the first quarter of 2021, when it was 19.2%.
"Although we implemented price reductions on many vehicle models across regions in the first quarter, our operating margins reduced at a manageable rate," Tesla said. "We 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."
Most recently, Tesla lowered some prices Tuesday, with those cuts affecting certain Model Y and Model 3 vehicles.
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The company released vehicle production and delivery figures earlier in the month, with the former coming in at about 440,800 total and the latter at nearly 422,900.
On production, the company’s total vehicles in the quarter represented a less than 1% increase from the prior quarter and a 44% jump from the first-quarter of 2022. Deliveries, meanwhile, rose over 4% quarter-over-quarter and 36% year-over-year.
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"For 2023, we expect to remain ahead of the long-term CAGR with around 1.8 million cars for the year," the company said.
Tesla said it "continue[s] to make progress on [its] next generation platform" of vehicles.
