Tesla (TSLA) earnings report for the first quarter of 2023

Employees at the Tesla Gigafactory Berlin Brandenburg work on the final inspection of the finished Model Y electric cars. The Tesla facility was opened and put into operation on March 22, 2022.

Patrick Pleuil | Image Alliance | Getty Images

Tesla is scheduled to report earnings for the first quarter of 2023 after the stock market closes on Wednesday.

Here’s what analysts expect:

• Earnings per share: $0.85, according to the average analyst estimate compiled by Refintiv
• Income: $23.21 billion, according to Refinitiv estimates

Tesla’s first quarter earnings will be broadcast live via Twitter Spaces, a first for the electric car manufacturer. CEO Elon Musk sold billions of dollars of his Tesla stock in 2022 to finance a $44 billion acquisition of the social media company, where he is now also CEO.

Analysts are closely watching Tesla’s auto gross margins after the company slashed prices on its vehicles late last year and into the first quarter of 2023, including further cuts on Tuesday night. At the same time, Tesla is mapping out ambitious plans for expansion and increased capital expenditure.

Revenue in the quarter likely rose 24% from $18.76 billion a year earlier, according to Refinitiv estimates.

Tesla currently sells four EV models, which are manufactured at two car assembly plants in the US, one in Shanghai and another outside Berlin.

Shareholders asking questions ahead of the earnings call for management’s review sought updates on the company’s trapezoidal, sci-fi-inspired Cybertruck, the company’s energy division and the timing of a new model car from Tesla.

In early April, Tesla reported vehicle deliveries of 422,875 vehicles in the first quarter, the closest approximation of sales disclosed by the company. Production was slightly higher than deliveries for the first three months of 2023 at 440,808 vehicles.

A month earlier, Musk announced plans to build a Tesla factory in Monterrey, Mexico, a day’s drive from a relatively new factory in Austin, Texas. And more recently, Tesla said it plans to set up a factory to make Megapacks, or large lithium-ion battery-based energy storage systems, in Shanghai.

According to a financial filing published in late January, Tesla expected to spend between $7 billion and $9 billion in 2024 and 2025, an increase in capital spending of about $1 billion over the next two years.

Tesla shares have rebounded this year from a dismal 2022, when they lost about two-thirds of their value alongside a plunge in tech companies. The share is up 48% in 2023.

SEE: CFRA’s Garrett Nelson is positive about long-term earnings growth for Tesla