- Tesla’s gross margin at 17.4% surpasses estimates of 16.5% though slightly lower compared to a year ago value (19.3%)
- Adjusted EPS is 45c, less than the previous year’s 85c and estimate of 52c
- Revenue recorded is $21.30 billion, a 8.7% dip from last year and also below the estimated $22.3 billion
- Tesla reported a negative free cash flow of $2.53 billion versus positive $441 million from last year
- Increases is seen in capital expenditure, now at $2.77 billion, which is 34% higher than previous year and higher than estimates of $2.39 billion
- Operating income sits at $1.17 billion, underperforming both last year’s result and the estimated $1.53 billion
- Anticipated ‘Notably Lower’ Volume Growth Rate for 2024
- Tesla updates about their future vehicle line-up and plans to accelerate launch of new models
- Company to launch more affordable models, both in standard and in more economical versions
- Remains committed to reducing company-wide costs where possible, including reducing COGs per vehicle
- Updates that production at Gigafactory Shanghai is down sequentially due to seasonality and planned shutdowns
- Current business updating may lead to fewer cost cuts than expected
- Company is currently working on the functionality of ride-hailing
- Acceleration of new model launches also mentioned, ahead of previously projected start of production in the second half of 2025
- Post-market trading sees Tesla shares rise by 5.6% to $152.83 on 1.34 million shares traded
- Analysts currently hold 21 buys, 27 holds, and 14 sells on Tesla’s stock
Tesla on Smartkarma
Analyst coverage on Tesla by independent research network Smartkarma reveals contrasting sentiments. Vicki Bryan‘s reports, “Tesla Q1 Deliveries: Look Out Below” and “Tesla Q1 Trends: Rockslide,” paint a bearish outlook due to missed delivery targets and disappointing sales figures, with a focus on excess inventory and production issues affecting performance.
In contrast, Caixin Global provides a bullish perspective in their report, “Tesla Increases Price of Model Y in China in Sign That Price War Is Easing.” The analysis highlights Tesla’s strategic price increase on the Model Y in China as a positive signal amidst a competitive market, indicating a potential shift in pricing dynamics.
A look at Tesla Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Tesla has a promising long-term outlook. With a high Growth score of 5, the company is expected to see strong expansion in the future. Furthermore, Tesla has demonstrated resilience, scoring a 4 in that category, indicating its ability to adapt and withstand challenges. However, there are areas where Tesla could improve, with Value and Momentum scores of 2 each and a low Dividend score of 1.
Tesla Inc., a global automotive and clean energy firm, has established itself as a leader in electric vehicles, battery energy storage, solar products, and related services. The company innovates in renewable energy solutions and technology, including electric powertrain components for other automakers. With a mix of high growth potential and solid resilience, Tesla’s future prospects look promising despite some areas of improvement highlighted by the Smartkarma Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
