© Reuters.
Investing.com — Tesla reported Wednesday first-quarter results that beat on both the top and bottom line as the electric vehicle maker’s margins were less bad than feared despite recent price cuts.
Tesla Inc (NASDAQ:) shares were up 1% in aftermarket hours Wednesday following the news.
Tesla EPS of $0.91 on revenue of $24.93 billion. Analysts polled by Investing.com anticipated EPS of $0.79 cents on revenue of $24.29B.
Gross margins excluding credits, which have been closely watched following recent price cuts, fell 6.82% to 18.2% in Q2 year over year, though that was higher than analysts’ estimates for 16.9%.
“We believe Tesla is seeing steady demand post price cuts in the US and China with margins now in stabilization mode that should bottom over the next 1-2 quarters,” Wedbush said in a note Wednesday following the results.
The Tesla price cuts helped the EV maker boost its installed base and rake-in new EV customers, with deliveries surging 86% to 466,140 EVs in Q2, marking a record quarter for the company.
Tesla said it remains on track for initial deliveries of its Cybertruck this year. Earlier this week, the EV maker said it had started production of its Cybertruck in Texas.
The EV maker is expected to ship around 2,000 units this year, Deutsche Bank estimated.
Gains in Tesla, which is up 169% year to date, have also been driven by optimism around demand for the company’s supercharger network.
Several automakers including Ford, GM and Mercedes have recently struck deals to access Tesla’s North American Charging Standard.
“[W]e believe the supercharger network represents a large monetization opportunity for the company in its growth story,” Wedbush added.
