TESLA Q1 EARNINGS REPORT REACTION

EV Channels Review

Tesla's Q1 2023 earnings report reaction highlights significant price cuts across Model Y and Model 3, with the Model Y seeing a $3,000 reduction on all trims, bringing the standard range below $40,000 with federal tax credits. The Model 3 also received price adjustments, now starting around $36,000 with credits. The report indicates that despite these cuts, operating margins were managed, and Tesla aims to leverage its cost leadership and focus on future profitability through autonomy, supercharging, and services. Energy storage production capacity is rapidly expanding, with new mega-factories announced. While automotive revenue saw a sequential decline, partly due to foreign exchange impacts and reduced average selling prices, overall revenues remained strong, driven by vehicle deliveries and growth in energy and services. The company reiterated its 50% CAGR production target for 2023, expecting to produce around 1.8 million cars. The stock's after-hours reaction was initially negative, despite the report largely meeting expectations and showing resilience in core automotive margins excluding credits.