Shulou(Shulou.com)11/24 Report--

CTOnews.com April 20 news, Tesla Automobile today announced the company's first quarter of fiscal year 2023 results. Tesla's total revenue in the first quarter was $23.329 billion, up 24% from $18.756 billion in the same period last year, and its net profit was $2.539 billion, compared with $3.28 billion in the same period last year, according to the report. net profit attributable to common shareholders was $2.513 billion, compared with $3.318 billion for the same period last year, down 24% from a year earlier.

Tesla reported its lowest quarterly gross margin in two years, below market expectations. Facing the dual pressure of falling demand and increased competition caused by the economic downturn, the company has had to cut prices several times to boost sales. Elon Musk, chief executive of Tesla, said Tesla could sacrifice his industry-leading profit margins to achieve growth during the recession and keep pace with competitors in the Chinese market. "before we improve our self-driving technology, it's best to sell more cars at a lower profit margin and reap profits in the future," he said. " He also said that despite the uncertain economic outlook, Tesla's orders still exceeded production capacity.

Tesla did not disclose gross profit margins for the car business, a closely watched indicator. "We expect the pricing of our products to continue to change according to a variety of factors, either increasing or reducing prices," the company said in a statement. " The company said it still believes its operating margins will remain among the highest among the big carmakers. Tesla's shares fell 3.7 per cent in after-hours trading. The company reported a total gross profit margin of 19.3%, below the 22.4% expected by 14 analysts. Analysts expect Tesla's gross profit margin for cars this quarter to be 23.2%, down from the record of 32.9% set in the same period last year.

Tesla has cut prices several times in the United States, China and other markets since the end of last year. Analysts believe Tesla may need to cut prices further to cope with a particularly fierce price war in China, while his new factories in Berlin and Texas are also making cars. Tesla reported a record $14.38 billion in inventory in the first quarter, up from $669 million in the same period last year. $154 million in cash was burned in the quarter, and more cash would have been consumed were it not for the $1.6 billion gain from "investment at maturity".

Tesla faces fierce competition in the Chinese market. "Tesla's worrying sales figures in China show that demand for cars has fallen more than expected in the face of growing competition from local electric car companies," said Jesse Cohen, a senior analyst at Investing.com.

Musk announced plans to produce a new battery unit in 2020 to halve the cost of the most expensive parts of electric vehicles, but he admitted on March 1 that the company was still trying to increase production of these battery units. Musk wants to reduce battery costs to meet his promise to build a $25000 car, and fans have been longing for Tesla to update his old models. "our experts believe that Tesla is too dependent on his Model 3 and Model Y for growth... investors are eager to see new product launches," said Orwa Mohamed, an analyst at Third Bridge. "in particular, they need a full-size SUV to replace the Model X and a smaller, cheaper Model 3 to drive sales." Musk said in January that Tesla expected to start production of the Cybertruck this summer, but that mass production would not be achieved until next year. Mr Musk said on a conference call on Wednesday that he expected the delivery of Cybertruck to take place in the third quarter. Tesla reiterated that it is expected to achieve the delivery of about 1.8 million vehicles this year.

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