Tesla reported earnings per share (EPS) of $0.41, higher than expectations of $0.37. However, its revenue of $22.39 billion was a miss compared to expectations of $22.64 billion. The revenue miss is due to the core automotive business continuing to struggle against global competitors Xiaomi and BYD.
Shares had surged as much as 4% in extended trading after EPS beat for the second straight quarter, but gave up all of those gains, turned negative and fell as much as 2% after the management guided for capex to be higher this year. Tesla expects to spend $25 billion this year, higher than the initial projection of $20 billion.
Tesla CFO Vaibhav Taneja said the company has seen increased customer interest amid rising gas prices. “We have seen a slight growth in terms of quarter-over-quarter deliveries on the order backlog front,” Taneja said.
CEO Musk also said in the earnings call that Tesla will substantially increase vehicle production and that there will be a “significant increase” in capex. However, the company spent only $2.5 billion in the first three months of the year, resulting in a $1.4 billion positive free cash flow, contrary to analyst expectations of a $1.9 billion burn.
The quarter though, was the second-worst for vehicle deliveries since Mid-2022 when the production of Model Y was halted. Tesla said it remains on track to start making key products including Cybercab, Semi and an updated version of its Megapack battery storage system.
Plans for Tesla’s nascent ride-hailing business “Robotaxi” were also reiterated, with the company saying that business is on track to expand to Phoenix, Miami, Orlando, Tampa and Las Vegas in the first half of this year.
(With Inputs From Agencies)
