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Revenue 33 trillion won, operating profit 1.3 trillion won... Stock price rises 3% in after-hours trading due to better-than-expected earnings
U.S. electric vehicle maker Tesla, led by Elon Musk, posted better-than-expected earnings in the first quarter of this year.
Tesla announced in its earnings report on the 22nd (local time) that its Q1 operating profit under Generally Accepted Accounting Principles (GAAP) was tallied at $900 million (approximately 1.3 trillion won).
This represents a 136% increase compared to the same period last year. Tesla explained that one-time gains from tariffs and exchange rates had a positive impact.
Revenue increased by 16% year-on-year to $22.39 billion (33.1 trillion won), and net income was $477 million (705.7 billion won). Adjusted earnings per share (EPS) was $0.41.
This slightly exceeded market expectations.
According to MarketWatch, financial markets had expected Tesla's Q1 revenue to be $22.2 billion and adjusted EPS to be $0.37.
Bloomberg reported that this is the first time since 2022 that Tesla has posted adjusted EPS exceeding market expectations for two consecutive quarters.
Notably, Tesla reversed market predictions of cash depletion by generating $1.44 billion (2.13 trillion won) in free cash flow. However, foreign media explained that this was due to lower capital expenditures in the first quarter.
Despite sluggish performance in the EV market, Tesla is optimistic that demand for its vehicles is increasing globally.
Tesla stated in a document distributed to shareholders that day, "We have confirmed that demand for our vehicles continues to grow in the Asia-Pacific and South American markets, and demand is also rebounding in Europe, the Middle East, Africa (EMEA), and North America."
The number of subscribers to supervised Full Self-Driving (FSD), which costs $99 per month, increased by 51% year-on-year to 1.28 million.
Tesla is shifting its focus to artificial intelligence (AI) and humanoid robots.
It is piloting robotaxis, which are fully autonomous driverless taxis, and will begin producing the Optimus robot from Q2 this year at the factory that previously produced the Model S and Model X. Additionally, it plans to mass-produce the 'Semi' electric pickup truck within the year.
Tesla added, "We are looking forward to where Tesla will stand this year, with a smooth automotive business, the advancement of FSD 4, the full-scale operation of robotaxis, and Optimus gearing up for mass production."
Following this news, Tesla's stock price rose 3.4% in after-hours trading.
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