In the first quarter of the year, Tesla reported net income of $2.51 billion, a 24% decline compared to the same period last year. Meanwhile, GAAP earnings were $0.73, down 23% from the year-ago quarter. Despite this, Tesla’s automotive revenue for the quarter reached $19.96 billion, which is the company’s core segment.
The earnings call for the first quarter of 2023 was livestreamed via Twitter, marking a first for the electric vehicle maker. CEO Elon Musk sold billions of dollars worth of his Tesla holdings in 2022 to finance a $44 billion buyout of the social media company, where he is now also CEO. Tesla cut prices on its vehicles at the end of last year and into the first quarter of 2023, including additional cuts made Tuesday night, while planning for expansion and increased capital expenditures.
Tesla currently produces four EV models at two vehicle assembly plants in the U.S., one in Shanghai, and another outside of Berlin. In early April, Tesla reported vehicle deliveries of 422,875 vehicles in the first quarter, with production slightly higher than deliveries at 440,808 vehicles.
The company is also charting ambitious plans for expansion and increased capital expenditures, with a financial filing published in late January estimating that Tesla expected to spend between $7 billion and $9 billion in 2024 and 2025, an increase in capital expenditures of about $1 billion in the next two years.
Tesla shares have rebounded this year, with the stock up 48% in 2023, following a difficult 2022 where it lost about two-thirds of its value alongside a plunge in tech companies. Shareholders who submitted questions ahead of the earnings call were seeking updates on the company’s Cybertruck, its energy division, and the timing for a new model vehicle from Tesla.