Instant Reaction: Tesla Beats Estimates, Hints at EV Demand Rebound
4/22/202615 min
Tesla beat Wall Street’s profit expectations to start the year as the automaker said demand for its electric vehicles is rebounding around the globe, hinting at a possible recovery for its long-struggling automotive business.
Adjusted earnings rose to 41 cents a share in the first quarter, the company said Wednesday in a statement, higher than the 34-cent average of analyst estimates compiled by Bloomberg. It’s the second straight quarter Tesla’s earnings have exceeded expectations.
Tesla said it “saw continued growth in demand for our vehicles” in parts of Asia-Pacific and South America, along with a rebound in North America and the Europe-Middle East region. The surprisingly optimistic comments come several weeks after the automaker reported one of its worst quarters of auto sales in years.
For instant reaction and analysis, Bloomberg Businessweek Daily hosts Carol Massar and Tim Stenovec speak with:
- Steve Man, Bloomberg Intelligence Global Autos and Industrials Research Analyst
- Ed Ludlow, Bloomberg Tech co-host
- Ross Gerber, President and CEO at Gerber Kawasaki
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Carol Massar· Host0:18
Yeah, let's go right to Tesla. It just crossed the Bloomberg terminal. First quarter adjusted EPS, folks, forty-one cents a share, seven cents better than what the street was expecting. Um, that was- that's adjusted EPS. First quarter gross margin coming in stronger than forecast, certainly, uh, a sign of profitability. Twenty-one point one percent versus an estimate of seventeen point seven percent. First quarter revenue coming in slightly higher than what the street was forecasting, Tim. Twenty-two point thirty-nine billion. The street estimate was for twenty-two point nineteen billion.
Tim Stenovec· Host0:50
Okay, so some other headlines crossing the Bloomberg terminal. You mentioned free cash flow, but worth repeating 'cause it is a redhead, Carol. First quarter free cash flow, one point four four billion. The estimate was for a negative one point eight six billion. Uh, the Tesla, uh, communications around earnings are a slide deck, so it's kinda tough to go through. But Tesla says that the Cybercab, the Tesla Semi, the Megacap production starting in twenty twenty-six, so that's this year. Tesla also saying the first gen production lines for Optimus, that's the- Mm-hmm ... humanoid robot, are being installed. Tesla also saying that Cybercab, uh, and the Tesla Semi are on schedule for twenty twenty-six. The company says, uh, seeing its rebounds in demand for