(Bloomberg) -- Tesla Inc. reported first-quarter earnings that just missed analyst estimates after a series of aggressive price cuts squeezed profit margins.
Revenue rose to $23.33 billion in the quarter, nearly in line with Bloomberg estimates of $23.35 billion. Profit excluding some items fell to 85 cents a share, slightly below the 86-cent average of estimates compiled by Bloomberg.
The Austin, Texas-based electric-vehicle maker has been cutting prices to protect its leading market position. Tesla said its operating margin was 11.4% in the three-month period, down from 16% last quarter and 19.2% a year ago. The carmaker downplayed concern about its recent price cuts, saying its operating margins fell “at a manageable rate.”
“We continue to believe that our operating margin will remain among the highest in the industry,” the company said in a statement to shareholders.
The company’s slid more than 4.5% in late trading in New York after the results were announced. The shares were up 47% so far this year through Wednesday’s close.
The EV maker said output this year will meet previous guidance for average annual growth of 50% over multiple years, and said it’s on track to deliver about 1.8 million vehicles this year.
Tesla’s profitability sets it apart from other EV companies and is closely watched by investors. The company currently makes the Model S, X, 3 and Y.
--With assistance from Esha Dey.
©2023 Bloomberg L.P.
