Cars and Drivers

Should Tesla Get More Credit for Its Earnings Beat?

Jag_cz / iStock Editorial via Getty Images

Tesla Inc. (NASDAQ: TSLA) reported its most recent quarterly results after the closing bell on Monday. The electric vehicle (EV) giant said that it had $0.93 in earnings per share (EPS) and $10.39 billion in revenue, compared with consensus estimates that called for $0.79 in EPS and $10.29 billion in revenue. The fourth quarter of last year reportedly had $0.23 in EPS and $5.99 billion in revenue.

Revenues decreased 3.3% on a quarter-over-quarter basis and increased 73.6% year over year. This was achieved primarily through substantial growth in vehicle deliveries, as well as growth in other parts of the business. At the same time, vehicle ASP (average selling price) declined by 13% year over year as Model S and Model X deliveries reduced in the first quarter due to the product updates and as lower ASP China-made vehicles became a larger percentage of the mix.

In the first quarter, operating income increased to $594 million, resulting in a 57% operating margin.

For the quarter, automotive sales increased 75% year over year to $9.00 billion, with a gross margin of 26.5%. Total deliveries came in at 184,877 for the quarter.

Separately, the company reported solar deployment of 92 MW and storage deployment of 445 MWh, year over year increases of 163% and 71%, respectively.

On the books, Tesla reported cash and cash equivalents of $17.141 billion at the end of the first quarter, versus $19.38 billion at the end of the previous year.

Tesla stock closed Monday at $738.20, in a 52-week range of $136.61 to $900.40. The consensus price target is $650.81. Following the announcement, the stock was down over 1% at $725.51 in the after-hours session.

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.