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Exceeds EPS forecast for 2 consecutive quarters
This year's capital expenditure forecast expanded to $25 billion
US electric vehicle maker Tesla, led by Elon Musk, posted better-than-expected results in the first quarter of this year.
Tesla announced on the 22nd (local time) through its earnings release that its Q1 operating profit under Generally Accepted Accounting Principles (GAAP) was tallied at $900 million (approximately 1.3 trillion won).
This is 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 result 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 generated $1.44 billion (2.13 trillion won) in free cash flow, defying market expectations of cash depletion. However, foreign media explained that this was due to lower capital expenditures in the first quarter.
Despite its sluggish performance in the EV market, Tesla is optimistic that demand for its vehicles has recently been increasing globally.
In a document distributed to shareholders today, Tesla stated, "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, Middle East, Africa (EMEA), and North America."
The number of subscribers to supervised Full Self-Driving (FSD), which costs $99 per month, reached 1.28 million, a 51% increase year-on-year.
Tesla is shifting its focus to artificial intelligence (AI) and humanoid robots.
It is piloting a fully autonomous robotaxi, and starting in Q2 of this year, it will produce the humanoid robot Optimus at the factory that previously produced Model S and Model X. Additionally, it plans to mass-produce the electric pickup truck 'Semi' within the year.
Tesla added, "We are excited to see where Tesla stands this year with a smooth automotive business, the advancement of FSD 4, the full operation of robotaxis, and Optimus gearing up for mass production."
Instead, Tesla expects its capital expenditures this year to exceed $25 billion (approximately 37 trillion won). This significantly surpasses the previous forecast of $20 billion and is roughly three times the capital expenditures incurred last year.
Musk stated in a conference call, "You should expect capital expenditures to increase very significantly this year," adding, "It will be fully justified given the significantly increasing revenue stream."
Bloomberg reported that the capital expenditures would be invested in Optimus production, AI projects, and Cybertruck development and production.
Tesla's stock price briefly rose by nearly 5% in after-hours trading due to strong earnings, but later gave back all gains and closed flat after the announcement of increased capital expenditures.
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