In the first quarter of 2024, Tesla reported total revenues of $21.3 billion, with automotive revenues making up $17.3 billion. This represents a 9% year-over-year decline, disappointing analysts from Bloomberg who had projected a top-line revenue of $22.31 billion. Furthermore, Tesla’s non-GAAP EPS for the quarter stood at $0.45, with GAAP EPS at $0.34, both of which were below the Bloomberg analyst consensus of $0.52.
The company’s operating income for the quarter saw a decrease to $1.2 billion, resulting in a 5.5% operating margin. Specifically, Tesla posted $1.2 billion in GAAP operating income, $1.1 billion in GAAP net income, and $1.5 billion in non-GAAP net income. Factors contributing to this decline in profitability included reduced vehicle average selling prices, increased operating expenses driven by AI, cell advancements, and other R&D projects, as well as costs related to the Cybertruck production ramp.
Tesla’s cash position at the end of Q1 2024 was $26.9 billion in cash, cash equivalents, and investments. The company reported a negative free cash flow of $2.5 billion, primarily due to an inventory increase of $2.7 billion and AI infrastructure capex of $1.0 billion.
During the first quarter, Tesla faced various challenges including production delays attributed to the initial phase of the updated Model 3 ramp at the Fremont factory, disruptions caused by the Red Sea conflict affecting shipping diversions, and an arson attack at Gigafactory Berlin.
Despite these obstacles, Tesla investors remain optimistic. As of the latest trading, Tesla shares are up 5.75% at $153.09 per share, reflecting a positive sentiment towards the company’s future prospects.
