dailyloe.com – Tesla reported first-quarter earnings on Wednesday that beat analyst estimates despite revenue coming in weaker than expected. The company’s shares rose more than 3% in extended trading following the announcement. Tesla’s stock has underperformed all of its megacap peers so far this year, dropping 14% as of Wednesday’s close. The core automotive business continues to struggle against global competition.
Revenue increased 16% in the quarter from $19.3 billion a year earlier, according to Tesla’s earnings statement. In its auto segment, revenue also increased 16% to $16.2 billion from $14 billion a year ago. Tesla confirmed in its earnings deck that it plans to make ‘more affordable trims’ of its Model Y SUV and Model 3 sedans. The past year has been a challenge as rivals offer higher-tech but lower-cost models.
Earlier this month, Tesla reported 358,023 vehicle deliveries for the first quarter. This figure was lower than the prior quarter and up about 6% from a year earlier. Tesla has recorded annual declines in the past two years. A drop in the year-ago quarter was partially attributable to ‘the loss of several weeks of production’ for Model Y factory upgrades.
Net income increased to $477 million, or 13 cents a share, from $409 million, or 12 cents a share, a year earlier. In its energy segment, Tesla reported $2.41 billion in revenue for the quarter. This represents a 12% decline from $2.73 billion in the year-ago period. The energy segment sells solar installations and battery energy storage systems.
CEO Elon Musk has been trying to change the narrative by focusing on self-driving technology and humanoid robots. The company is testing a small number of driverless cars in its ride-hailing service in Texas. Tesla still relies on EV sales for the bulk of its revenue. It does not yet sell a robotaxi-ready vehicle.
The company also faces an ongoing consumer backlash. This is in response to CEO Elon Musk’s work with the Trump administration. His incendiary political rhetoric and endorsements of far-right political figures have contributed to this backlash. Competitors like China’s BYD and Xiaomi present significant challenges to Tesla’s aging lineup.
