Tesla has published its financial results for the first quarter of 2023. Although it has not met Wall Street’s expectations —they expected 23,617 million dollars and the company reported 23,300 million—, they surprise with their immense profit margin per vehicle sold: 19.3%. A huge figure, much higher than any other automotive manufacturer. And that draws attention, above all, due to the drop in prices that they announced at the beginning of January.
“Our near-term pricing strategy takes a long-term view of the potential revenue from each car sold, including the potential value of a Tesla vehicle through range, supercharging, connectivity and services. We anticipate our pricing to continue to evolve. , both up and down, depending on a number of factors.
“Although we have implemented price reductions on several models of our vehicles across various regions during the first quarter of 2023, our operating margin has decreased at a manageable rate. We expect further reduction in manufacturing costs of our cars, thanks to improved production efficiencies at our newer factories Also thanks to lower logistics costs We maintain our focus on operating leverage as we continue to scale
While Tesla’s gross revenue has been significantly higher compared to the first quarter of 2022 — $18.756 million versus $23.329 million — net income is 24% lower. While in the first quarter of 2022 there were 3,318 million, the first quarter of 2023 is 2,513 million. This change responds to Tesla’s search to get closer, lowering prices, to more consumers. The market did not like this last piece of information.
Even so, Tesla is still the world’s largest electric car manufacturer. They calculate to sell close to two million vehicles throughout 2023 and during the first quarter of this year they broke unit delivery records.