Tesla Q1 Earnings Miss Estimates, But Gross Margin Exceeds
Automotive Giant Reports Mixed Results
Tesla Inc. (TSLA) recently released its first-quarter earnings report, revealing mixed results that both missed and exceeded analyst expectations.
The electric-vehicle maker posted earnings per share (EPS) of $2.27, falling short of the consensus forecast of $2.31. However, the company's automotive gross margin surpassed estimates, coming in at 31.7%.
Despite the EPS miss, Tesla's revenue of $23.2 billion exceeded expectations of $22.6 billion. The company's automotive revenue grew by 58% year-over-year, driven by strong demand for its Model 3 and Model Y vehicles.
Tesla's results also highlighted the impact of its recent price cuts, which helped boost sales but weighed on its average selling prices. The company said it expects to continue reducing prices in the future to make its vehicles more affordable.
Analysts remain optimistic about Tesla's long-term prospects, citing its continued innovation and market leadership in electric vehicles. However, some analysts have expressed concerns about the potential impact of competition and rising interest rates on the company's growth.
Tesla's stock price has been volatile in recent months, reflecting investor uncertainty about the company's future. Following the earnings report, Tesla's stock initially declined but later recovered some of its losses.
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