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Tesla Net Income Drop by 20% in Q1, Achieved 44% Vehicle Production Growth

Yusuf Balogun
Yusuf Balogun
Yusuf is a law graduate and freelance journalist with a keen interest in tech reporting.

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In its financial results for the first quarter of 2023 posted on the Investor Relations website, Tesla has achieved a production rate of 5k Model Y/week in its Giga Berlin factory and its net income earnings dropped more than 20% from last year’s revenue.

Tesla Net Income Drops in Q1 Financial Reports

The update on the Investor Relations website shows that the American electric vehicles giant, Tesla net income came in at $2.51 billion, down 24% from last year, while GAAP earnings came in at 73 cents, down 23% from the year-ago quarter.

As posted on its official Twitter page, Tesla said its Giga Shanghai has been successfully running near full capacity for several months and remains its main export hub. The firm further noted that its energy storage deployments increased by 360% YoY to 3.9 GWh which is the highest level it has achieved so far.

However, given the above, the EV giant is said to have achieved 44% growth in vehicle production and 36% growth in deliveries YoY, despite the first quarter historically being the most challenging quarter for the auto industry.

On the other hand, Tesla’s primary business, the automotive industry, saw sales of $19.96 billion in the quarter, up 18% over the prior period. The overall sum increased by 24%. Automotive regulatory credits brought in $521 million during the first three months of 2023, down from $679 million in the same period the previous year.

Revenue for Tesla Energy skyrocketed to $1.53 billion, a 148% increase over the same time in 2017. According to the firm, the deployment of Tesla’s energy storage devices climbed by 360% to 3.9 GWh.

The Powerwall home backup battery and the utility-scale Megapack system, both manufactured by Tesla, are examples of lithium-ion battery-based energy storage systems. These systems allow utilities to store and use more energy produced by intermittent renewable sources like solar and wind.

Tesla’s Future Forecast 

As part of its plan, Tesla’s CEO, Elon Musk said the company is now building alpha versions of the Cybertruck on a pilot line. Tesla intends to produce the Cybertruck at its Austin, Texas factory. Musk said he anticipates an event to kick off Cyber Truck deliveries in the third quarter of 2023.

Before the end of 2023, the EV giant expects to produce 1.8 million vehicles, Musk reiterated, or possibly an upside volume of 2 million vehicles this year.

Recently, Elon Musk announced plans to build a Tesla factory in Monterrey, Mexico, a day’s drive from a relatively new factory in Austin, Texas. Also, the firm announced its intention to build a factory in Shanghai to produce Megapacks or huge lithium-ion battery-based energy storage systems.


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