to leave a comment.
EPS outlook exceeded for two consecutive quarters
Capital expenditure forecast expanded to $25 billion this year
Tesla, the US electric vehicle maker led by Elon Musk, posted better-than-expected earnings in the first quarter of this year.
Tesla announced on the 22nd (local time) through its earnings report that its Q1 operating profit under Generally Accepted Accounting Principles (GAAP) was tallied at $900 million (approximately 1.3 trillion won).
This is a 136% increase compared to the same period last year. Tesla explained that one-time gains from tariffs and exchange rates had a positive impact.
Revenue increased by 16% year-on-year to $22.39 billion (33.1 trillion won), and net income was $477 million (705.7 billion won). Adjusted earnings per share (EPS) was $0.41.
This result slightly exceeded market expectations.
According to MarketWatch, financial markets had expected Tesla's Q1 revenue to be $22.2 billion and adjusted EPS to be $0.37.
Bloomberg reported that this is the first time since 2022 that Tesla has exceeded market expectations for adjusted EPS for two consecutive quarters.
Notably, Tesla generated $1.44 billion (2.13 trillion won) in free cash flow, overturning market predictions of cash depletion. However, foreign media explained that this was due to lower capital expenditures in the first quarter.
Despite underperforming in the EV market, Tesla recently expressed optimism that demand for its vehicles is growing globally.
In a document distributed to shareholders on this day, Tesla stated, "We have confirmed that demand for our vehicles continues to grow in the Asia-Pacific and South American markets, and demand is also rebounding in Europe, the Middle East, Africa (EMEA), and North America."
The number of subscribers to supervised Full Self-Driving (FSD), which costs $99 per month, increased by 51% year-on-year to 1.28 million.
Tesla is shifting its focus to artificial intelligence (AI) and humanoid robots.
It is currently test-operating robotaxis, which are fully autonomous driverless taxis, and will begin producing the humanoid robot Optimus from Q2 this year at the factory that previously produced Model S and Model X. It also plans to mass-produce the electric pickup truck 'Semi' within the year.
Tesla added, "We look forward to where Tesla will stand this year, with a smooth automotive business, the development of FSD 4, the full launch of robotaxis, and Optimus on the verge of mass production."
Instead, Tesla expects capital expenditures this year to exceed $25 billion (approximately 37 trillion won). This significantly exceeds the previous forecast of $20 billion. This is roughly three times the capital expenditure performance of last year.
Musk said in a conference call, "You should expect capital expenditures to increase very significantly this year," and "It will be fully justified given the significantly increasing revenue stream."
Bloomberg reported that capital expenditures will be invested in Optimus production, AI projects, and Cybertruck development and production.
Tesla's stock price initially rose by nearly 5% in after-hours trading due to strong earnings, but later gave back all gains and closed flat after the announcement of increased capital expenditures.
Newsletter
Get key news delivered to your email every morning
to leave a comment.