EXMO.COM analyst: Currently, Tesla is still trying to conquer the market by prioritising revenue over profit
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FXMAG.COM: Could you please share your thoughts on Tesla earnings after they're released?
After the release of the financial report, TSLA shares dropped by about 10%
Serhii Zhdanov (EXMO.COM): After the release of the financial report, TSLA shares dropped by about 10%. A decrease in margins was caused by the desperate price battle launched by the company in an effort to maintain high sales rates. Tesla has repeatedly reduced the prices of its cars in the USA, China, and Germany. Currently, Tesla is still trying to conquer the market by prioritising revenue over profit. As a result, TSLA's revenue rose 24% year-over-year in the first quarter of 2023. However, its profit shrank, causing the EBITDA margin and the operating margin to drop from nearly 27% to 18.3% and to 11%. Elon Musk emphasised that the company strives to continue the maximum possible production of cars and noted that Tesla still remains one of the most profitable companies in the industry. The company expects a gradual decrease in the cost of cars, while also planning to increase production efficiency at new factories and reduce logistics costs.
The company expects a gradual decrease in the cost of cars, while also planning to increase production efficiency at new factories and reduce logistics costs
Serhii Zhdanov (EXMO.COM): Tesla remains focused on operating leverage as it scales its business. Musk expressed confidence that Tesla will achieve full autonomy in 2023 if things go according to plan. However, Tesla's CEO is known for his long-term unfulfilled pledges. Tesla has claimed that it is looking for 50% year-over-year long-term growth and will deliver 1.8 million vehicles in 2023. Musk also added that the automaker might do better than that and produce two million vehicles.
