TSLA Stock: Tesla Reports Earnings Down 20% From 2022

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Today brought news that many investors have been waiting intently for: Tesla (NASDAQ:TSLA) reported earnings for the first quarter of 2023.

For the period, Tesla saw EPS of 85 cents and revenue of $23.33 billion. This is almost in line with the predicted metrics laid out by analysts, who forecast that the electric vehicle (EV) leader would post EPS of 86 cents and revenue of $23.35 billion. However, the results still came in slightly below, indicating that TSLA stock will likely drop as the market adjusts to the news.

While revenue did represent a year-over-year (YOY) increase of 24%, Tesla’s EPS declined 20% from $1.07 per share the same time last year. On top of that, “Tesla reported adjusted net income of $2.9 billion, less than the $3.03 billion estimated by the Street, and a billion less than last quarter and $700 million less than a year ago.”

TSLA Stock Post Earnings

Although Tesla’s Q1 earnings report came in mixed overall, it will likely push TSLA stock down as the sentiment is mostly negative. The company’s earnings call is scheduled for 5:30 Eastern this evening, but the numbers are in and are not particularly encouraging. TSLA stock has responded to the news by falling even further after a day of slowing trending downward.

It’s hard to ignore the fact that Tesla failed to beat expectations on both revenue and earnings, indicating that it hasn’t been a strong quarter. As InvestorPlace’s Eddie Pan reports, a key question surrounding the Tesla earnings report centers around the effectiveness of the company’s frequent price cuts recently. Tesla addressed this in its earnings deck:

“Although we implemented price reductions on many vehicle models across regions in the first quarter, our operating margins reduced at a manageable rate. 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.”

The company also claimed that production of its Cybertruck is on track. However, even the positive momentum that this may generate likely won’t be enough to offset the negative effects from Tesla’s misses. The report has set the tone for a negative quarter.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

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