TSLA Stock Earnings: Three key takeaways from Tesla’s first quarter earnings

TSLA Stock Earnings: Investors have had an anxious week, but Tesla (NASDAQ: TSLA) stockholders can finally breathe a sigh of relief now that the company’s first-quarter earnings have been released.

The figures aren’t perfect, but they point in the right direction when it comes to the most important issues. In after-hours trading, the stock of Tesla is up 4.7 percent.

Tesla had already wowed investors by hitting a first-quarter sales record. While some Tesla supporters were concerned that this might be the only good news they’d get this quarter, today’s earnings call should provide reassurance.

Let’s look at the Tesla stock earnings report in more detail and see what it means for investors.

TSLA Stock Earnings Can Rally on Revenue Growth

The report’s most important conclusion is that Tesla outperformed analyst estimates this quarter on both the top and bottom lines. It posted adjusted earnings per share of $3.22, compared to the $2.26 projected.

Revenue came in at $18.76 billion, beating Wall Street’s forecast of $17.8 billion. Its stated automotive revenue of $16.86 billion is up about 87 percent from the previous year. Gross margins in the automotive industry climbed by over 33%, with Tesla’s reported gross profit reaching $5.54 billion.

As CNBC reported, “Revenue growth was driven in part by an increase in the number of cars Tesla delivered, and an increase in average sales prices, the company said in its shareholder deck.”

These figures are excellent, especially given the difficulties Tesla has encountered in the last quarter. Some experts predicted that Tesla’s production would suffer if factories in Shanghai were temporarily shut down. This financial announcement demonstrates one thing: Tesla can succeed in the face of adversity.

Tesla Faced Declines in Energy Segment

Tesla’s energy holdings received some bad news.

The company’s solar deployments have dropped by nearly half, to 48 megawatts (MW). Its energy storage deployment, which totalled 846-megawatt hours, was up 90 percent year over year but down sequentially.

Tesla’s latest energy update was far from ideal. However, investors should take solace in the fact that these decreases were not due to the automotive sector, which accounts for the majority of Tesla’s income.

Musk Drives Speculation

Elon Musk hasn’t been able to attend all of Tesla’s earnings calls. He did, however, indicate earlier on Wednesday on social media that he would participate in the after-hours conversation.

Investors are especially ecstatic since they are expecting an update on his attempt to buy Twitter (NYSE: TWTR). His recent tweets have sparked a lot of anticipation that significant news about a tender offer is on the way. His strategy of keeping investors guessing has proven to be successful thus far.

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