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Tesla (TSLA) Q1 2023 EPS down 21% from Q1 2022, despite 24% year-over-year revenue growth

The company saw decent revenue growth in Q1 2023, however EPS fell 21 percent from Q1 2022.

Morgan Shaver

April 19, 2023 2:00 PM

Tesla

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Tesla dropped its Q1 2023 earnings report today, and among the noteworthy details included in the report is mention of EPS being down 21 percent from Q1 2022. For Q1 2023, EPS came in at $0.85 compared to EPS at $1.07 as seen in Q1 2022. This comes despite Tesla’s revenue growth being up 24 percent year-over-year with a reported total of $23.3 billion.

Free cashflow is also down 80 percent from the previous year despite margin headwind from underutilization of the company’s new factories. According to the report, revenue was impacted by factors such as growth in vehicle deliveries, growth in other parts of the business, reduced ASP YoY (excluding FX impact), and negative FX impact of $0.8 billion.

Operating income likewise decreased YoY to $2.7B in Q1 which resulted in a 11.4 percent operating margin. It’s noted that operating income was similarly impacted by growth in vehicle deliveries (despite the aforementioned margin headwind from underutilization of Tesla’s new factories), as well as gross profit growth in Tesla’s energy business, reduced ASP YoY, higher raw material costs, and lower credit revenue, among other items.

Looking at Q1 2023, Tesla remarks in its report that, “Although we implemented price reductions on many vehicle models across regions in the first quarter, our operating margins reduced at a manageable rate.” Ongoing cost reduction of its vehicles is expected going forward, “including improved production efficiency at our newest factories and lower logistics costs” with focus to remain on “operating leverage as we scale.”

For more on Tesla’s performance in Q1 2023, be sure to look through the full report. Also brush up on some of our other coverage, including Tesla’s (TSLA) Q1 2023 earnings results falling in line with revenue and EPS expectations, and Tesla assuring that Cybertruck factory tooling is on track and that the company is currently producing Alpha versions.

Morgan Shaver

Senior Editor

Morgan is a writer from the frozen wastelands of Maine who enjoys metal music, kpop, horror, and indie games. They're also a Tetris fanatic who's fiercely competitive in games like Tetris 99... and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver.