Tesla’s (NASDAQ:TSLA) first quarter 2023 earnings name comes on the heels of the corporate’s Q1 2023 Replace Letter. Tesla’s first quarter numbers have been fairly spectacular, with the electrical car maker assembly EPS expectations regardless of posting decrease gross margins throughout the quarter.
Various milestones have been highlighted by Tesla within the first quarter. Tesla Giga Berlin was listed with a capability of over 350,000 Mannequin Y per 12 months, and the FSD Beta program reached 150 million cumulative miles. The Cybertruck can also be nearer than ever to its first deliveries, with the all-electric pickup truck’s manufacturing line now being arrange.
The next are dwell updates from Tesla’s Q1 2023 earnings name. I shall be updating this text in actual time, so please maintain refreshing the web page to view the most recent updates on this story. The primary entry begins on the backside of the web page.
17:35 CDT – And that wraps up the Q1 2023 earnings name! Not gonna lie, this is without doubt one of the most info-heavy earnings calls thus far, with a number of questions answered from each the investor and analyst sides.
As soon as once more, thanks for staying with us for yet one more dwell weblog! Till the subsequent one!
17:31 CDT – Following a query from Jefferies, who requested if there’s a restrict to the direct promoting enterprise to develop market share, Elon Musk notes that Tesla’s direct promoting technique appears to be working to this point. And whereas the analyst introduced up the problem of consumers who could also be lacking human interactions for issues like service, Musk famous that “one of the best service is not any service.” He additionally famous that Tesla makes use of the suggestions loop to enhance automotive design so it wants much less service.
17:29 CDT – Following a query from Barclays, who requested concerning the margin profile of Berlin and Austin and the way it compares to Shanghai. Musk notes that Shanghai is effectively optimized, although Tesla expects Giga Berlin and Giga Texas to attain good margins as effectively.
17:26 CDT – Following a query from Morgan Stanley, Tesla executives reminiscent of Elon Musk reiterated that the corporate doesn’t actually consider opponents that a lot. Executives additionally famous that Tesla desires all EVs to succeed, as proven by the corporate opening its Supercharger Community to different manufacturers.
17:21 CDT – A query from Wolfe Analysis is requested, with the analyst asking about margins on Tesla’s lineup of providers.
Elon Musk reiterates that it’s exhausting to foretell this stuff. Zachary Kirkhorn additionally cautioned traders to not be too caught up with the short-term, as Tesla usually adopts methods designed for the long-term. In a method, gross margin ranges solely matter when it comes to how Tesla will make investments it within the following years.
Elon Musk additionally famous that Tesla is in a singular place as a result of Tesla can technically promote its vehicles for 0% revenue now and yield it in different methods sooner or later (i.e. by means of autonomy). He notes that actually, no different automaker can try this.
17:16 CDT – A query from Goldman Sachs is requested, with the analyst asking if Tesla remains to be seeing a 1.8 million goal for this 12 months, or will the corporate be going for two million.
Elon Musk famous that from a manufacturing standpoint, at the least, if issues go effectively, Tesla has a shot at 2 million this 12 months. That being mentioned, Tesla feels snug with a goal of 1.8 million autos for 2023.
17:10 CDT – A Baird analyst asks about Tesla’s packages reminiscent of Dojo and Optimus. Elon Musk notes that Dojo has a multi-billion greenback potential. “I take a look at Dojo as an extended shot guess — however an extended shot guess that would repay in a really large method,” Musk mentioned.
He additionally talked about upcoming initiatives reminiscent of warmth pumps for properties and industrial workplaces. Musk famous, nonetheless, that such merchandise are a “back-burner merchandise.”
Tesla additionally highlights the concept there isn’t a such factor as an “EV market share vs ICE.” Tesla sees it as a “automotive market” total. “All vehicles shall be EVs,” Musk mentioned.
17:03 CDT – A Deutsche Financial institution analyst asks about particular methods Tesla might additional monetize its merchandise, such because the Robotaxi platform.
Musk explains that the Robotaxi concept is kind of a common time period, although he reiterates that every one autos with {Hardware} 3 may very well be a Robotaxi. The Robotaxi can also be virtually synonymous with Tesla’s next-generation car.
A query on automotive gross margins was requested. Kirkhorn famous that a number of elements contributed to Q1 2023 gross margin outcomes. Elon Musk additionally talked about rate of interest, and uncertainty within the economic system contributed to Q1 2023 outcomes as effectively.
16:59 CDT – Cannacord asks about FSD take charges and if there are any vital positives and negatives. The analyst additionally asks if FSD pricing will even be dropping.
Elon Musk notes that it is a difficult query because the worth of an autonomous automotive is gigantic. He notes that enhancements are dramatic, although it’s extra of a “two steps ahead, one step again” sort of progress. Musk jokes that he believes FSD shall be achieved this 12 months (for the nth time now).
“The development may be very clearly in direction of full autonomy,” Musk mentioned.
Tesla additionally highlighted that the corporate just isn’t impacted by lithium pricing as a result of it has contracts in place. In any case, on the lithium entrance, at the least, the chokepoint is refining capability. The identical extends to the refining of the cathode and anode supplies.
Elon additionally begs — actually begs — everybody to enter refining, to a lot laughter from different executives.
16:51 CDT – The fifth investor query is requested: “How has international order consumption tracked since the latest spherical of worth cuts?”
“Orders are in extra of manufacturing,” Elon Musk mentioned.
The ultimate query from traders is requested: “Are you able to give up to date specs and pricing for Cybertruck, and any new options that can make it to manufacturing?”
Musk states that Tesla will reserve it for Cybertruck handover taking place towards the top of Q3, although he additionally acknowledged that the wait can be value it.
“A product like this solely comes solely every so often. It is not going to be disappointing in any respect,” Musk mentioned.
16:49 CDT – The fourth investor query is requested: “What do you anticipate FY23 automotive gross margins (ex-credits) shall be on the firm’s present pricing ranges?”
Zachary Kirkhorn famous that it’s tough to foretell this for the time being, particularly as Tesla is busy with initiatives such because the Giga Texas battery manufacturing facility. To this point, Giga Texas’ price optimizations are targeted on stabilizing manufacturing and decreasing 4680 prices. “We see a fairly good projection for Austin manufacturing facility,” Kirkhorn mentioned, noting that Giga Berlin additionally has a whole lot of areas for price discount.
Kirkhon additionally expresses this because of Tesla’s provide chain workforce, although he additionally famous that commodities stays max ache level for Tesla.
16:45 CDT – Third investor query is requested: “How effectively are 4680 cells assembly the expectations described on battery day? How lengthy will it’s till the cells meet these objectives?”
Austin’s 4680 battery cell facility is progressing effectively. A Tesla govt famous that Giga Texas’ 4680 manufacturing facility can be 70% decrease CAPEX when absolutely ramped. The lithium corpus christi refinery will even be breaking floor in Could. Tesla additionally achieved a 25% discount in COGS.
16:43 CDT – Second investor query is requested: “Do you continue to imagine Tesla Power shall be greater than auto and when will you present extra formal steering on megapack and total Tesla vitality?”
“I ought to simply make clear, greater than auto, from the standpoint of GWh deployed,” Musk mentioned. So whereas Tesla Power might not have the whole income of the corporate’s automotive enterprise, its battery deployments shall be considerably bigger. He additionally affirmed development according to expectations.
Zachary Kirkhorn additionally famous that it will be a couple of extra quarters till Tesla publishes steering on its Power enterprise.
16:40 CDT – First investor query is up: “What’s the course of to make auto pricing changes? What variables do you contemplate? How ceaselessly do you assessment pricing?”
“We do our greatest to assessment the manufacturing output and macro situations,” Musk mentioned.
16:39 CDT – Zachary Kirkorn congratulates the Tesla Power workforce for a document quarter. “Our storage enterprise is beginning to take form,” he mentioned. He assures that automotive gross margins stay at wholesome ranges. He highlights the necessity to concentrate on price efficiencies in order that Tesla might obtain its objectives.
16:36 CDT – Elon Musk’s opening remarks have been a recap of Q1. He highlights that the Mannequin Y was the best-selling car in Europe and it additionally carried out amazingly in the US. He states that Tesla’s working margins are nonetheless among the many highest within the business. Musk additionally notes that Tesla is trying to make a whole lot of margins as the corporate perfects autonomy.
“Whereas we diminished the value considerably in Q1, our working margins stay one of the best within the business,” Musk mentioned.
As for the Cybertruck, alpha variations are being constructed immediately. Quantity manufacturing line is coming alongside properly in Giga Texas. Supply occasion for the Cybertruck will seemingly be set for Q3 2023. The demand for the Cybertruck is notable, Musk mentioned, although it would take a while to get its manufacturing line down pat.
Megapack is making breakthroughs, with the battery posting its finest quarter ever in Q1. Objective is ready at 40 GWh a 12 months for now. He additionally highlights Tesla’s ramp for the Megapack, reminiscent of the beginning of a brand new Megafactory in Shanghai.
As for FSD Beta, this system has reached 150 million miles. “It is a knowledge benefit that actually nobody else has,” Musk mentioned, including that coaching knowledge shall be key in getting a bonus within the autonomous driving house. He notes that work on the Dojo supercomputer remains to be ongoing, and that this system can be advantageous sooner or later. “
“I actually assume DOJO potential is de facto vital,” Musk mentioned.
Musk additionally thanks Tesla’s international workforce for his or her milestones this quarter.
16:31 CDT – The earnings name begins! Tesla Head of Investor Relations Martin Viecha opens the decision. Elon and different Tesla executives are current.
16:28 CDT – If there’s one thing fairly attention-grabbing about this earnings name, it’s the truth that all the pieces appears to be on time. That Replace Letter was posted actually shortly after markets closed immediately. Tesla bulls in all probability recognize this, because it’s far much less nerve-racking than the lengthy wait instances for Replace Letters a number of years in the past.
16:25 CDT – Seems just like the livestream’s about to go dwell. To be truthful, Tesla’s fairly cool for being so open with its earnings name livestreams. There’s one in YouTube and one on Twitter. Right here’s the Twitter one.
16:15 CDT – Hello everybody, and welcome to yet one more dwell weblog! Tesla’s Q1 numbers are just about according to what TSLA bulls anticipated. Gross margins took a success, however that’s comprehensible due to the corporate’s aggressive pricing technique. Tesla’s warfare chest stays spectacular although, at $22.4 billion.
Right here’s the YouTube livestream.
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