Tesla beats profit forecasts but misses on revenue in Q1

Tesla has reported first-quarter earnings ahead of expectations, despite revenue coming in below forecasts as its core automotive business faces increasing competition.

The electric vehicle maker posted adjusted earnings per share of 41 cents, above analyst expectations of 37 cents, while revenue reached US$22.39 billion, missing estimates of US$22.64 billion. 

Revenue increased 16% from US$19.3 billion a year earlier, with automotive revenue also rising 16% to US$16.2 billion. 

Net profit rose to US$477 million, up from US$409 million in the same period last year. 

Tesla’s automotive gross margin, excluding regulatory credits, was 19.2%, its highest level in more than a year, supported by higher average selling prices and lower material costs. 

The company said it plans to introduce more affordable versions of its Model Y SUV and Model 3 sedan.

Tesla reported 358,023 vehicle deliveries for the quarter, up about 6% year-on-year but down from the previous quarter. 

The results come as Tesla faces increased competition globally, including from Chinese manufacturers such as BYD and Xiaomi, alongside pressure on its ageing vehicle line-up. 

The company also confirmed higher capital spending, with expenditure rising 67% year-on-year to US$2.49 billion in the quarter. It expects total capital expenditure to exceed US$25 billion this year. 

In its energy division, Tesla reported revenue of US$2.41 billion, down 12% from a year earlier. 

Tesla says it is continuing to invest in future technologies, including autonomous driving systems and its Optimus humanoid robot, with preparations for a large-scale production facility expected to begin in the second quarter. 

Shares rose in extended trading following the earnings release before falling after the company signalled higher-than-expected spending for the year.