Tesla (TSLA.US), the Austin, Texas-based electric vehicle manufacturer, reported disappointing financial results for the first quarter. The company’s revenue of $21.3 billion represented a 9% year-over-year decrease, falling short of analysts’ estimates of $22.34 billion. Additionally, the adjusted earnings per share for the quarter came in at $0.45 per share, lower than the analysts’ expectations of $0.51 per share.
During an earnings call with analysts on Tuesday, after the market closed, Tesla CEO Elon Musk attributed the underwhelming performance to the global pressure on electric vehicle (EV) adoption rates. Musk stated, “The EV adoption rate globally is under pressure, and a lot of other auto manufacturers are pulling back on EVs and pursuing plug-in hybrids instead.” As a result, Musk announced that Tesla would accelerate the launch of less expensive EV models, marking the third consecutive quarter of underperformance for the company’s profits and revenue.
Tesla’s production and delivery numbers for the first quarter also fell short of estimates. The company reported 386,810 global vehicle deliveries, lower than the estimated 449,080, and produced 433,371 vehicles, below the expected 452,976.
Notably, Tesla officials did not discuss plans for the company’s $5 billion Gigafactory Mexico during the call with analysts. In March 2023, Musk had announced that Tesla’s newest car factory would be built about 136 miles from the Texas-Mexico border near the Mexican city of Monterrey. However, in October, Musk had expressed concerns about the pressure the Gigafactory Mexico project was facing due to interest rates and the global economy.
Despite missing revenue and earnings targets, investors seemingly welcomed the much-needed update on the EV maker’s current and future prospects. As a result, Tesla shares climbed as much as 13% in after-hours trading.
(Tesla Stock Performance Monthly Chart)
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