Tesla (NASDAQ:TSLA) posted its Q1 2024 earnings report after markets closed today. The results, which were discussed in the Q1 2024 Update Letter, were released after the closing bell on Wednesday, April 23, 2024.
Tesla’s earnings come on the heels of a challenging quarter. During the first quarter, Tesla produced 433,371 vehicles and delivered 386,810 vehicles. Wall Street analysts expected 449,080 deliveries and 452,976 vehicles produced. Tesla noted in its Q1 vehicle delivery and production report that its challenges in the first quarter were partly due to the early phase of the updated Model 3 ramp at the Fremont factory, as well as shutdowns from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin.
The following is a quick overview of Tesla’s Q1 2024 earnings results.
REVENUE
In the first quarter of 2024, Tesla posted total revenues of $21.3 billion, with automotive revenues at $17.3 billion. Bloomberg‘s analyst consensus expected Tesla to post a top-line revenue of $22.31 billion.
Tesla’s total revenue declined 9% YoY in Q1 to $21.3 billion, which was affected by a number of factors such as a reduced vehicle average selling price year-over-year, a decline in vehicle deliveries and growth in other parts of the company’s business.
EARNINGS PER SHARE
Tesla’s non-GAAP earnings per share for the first quarter of 2024 was listed at $0.45, while GAAP EPS for Q1 2024 was listed at $0.34. In comparison, Bloomberg‘s analyst consensus expected Tesla to post adjusted earnings per share of $0.52.
PROFITABILITY
Tesla’s operating income decreased year-over-year to $1.2 billion in the first quarter of 2024, resulting in a 5.5% operating margin. Specifically, Tesla posted $1.2 billion GAAP operating income in Q1, $1.1 billion GAAP net income in Q1, and $1.5 billion non-GAAP net income in Q1.
Tesla’s profitability in the first quarter was affected by reduced vehicle ASP due to pricing and mix, an increase in operating expenses partly driven by AI, cell advancements, and other R&D projects, and the cost of the Cybertruck production ramp, among other reasons.
CASH
Tesla’s quarter-end cash, cash equivalents, and investments in Q1 2024 was $26.9 billion. Tesla notes that the sequential decrease of $2.2 billion in its cash was a result of negative free cash flow of $2.5 billion, which was driven by an inventory increase of $2.7 billion and AI infrastructure capex of $1.0 billion.
Tesla investors seem to have taken the company’s Q1 2024 earnings results positively. As of writing, TSLA shares are trading up 5.75% at $153.09 per share.
Below is Tesla’s Q1 2024 Update Letter.
TSLA-Q1-2024-Update by Simon Alvarez on Scribd
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