Electric vehicle maker Tesla (TSLA) has reported mixed financial results for this year’s first quarter as its sales missed Wall Street’s forecast.
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New trading tool for TSLA bearsThe company led by Elon Musk announced earnings per share (EPS) of $0.41, which topped the $0.37 expected among analysts. Revenue in the January through March period totaled $22.39 billion, which fell short of the $22.64 billion consensus expectation among analysts. Despite the miss, sales were up 16% from a year ago.
Tesla has struggled in recent quarters with declining global sales of its electric vehicle models. The decline has been partially due to a backlash against Musk and his politics. In the U.S., Tesla’s sales have also taken a hit after the government ended a rebate program that had applied to electric vehicles.
Tesla’s income statement. Source: The Fly
Tesla’s Struggling Business
Outside of America, Tesla’s core automotive business has faced strong competition from automakers such as China’s BYD (BYDDF) and Nio (NIO). In its automotive segment, Tesla’s revenue increased to $16.2 billion from $14 billion a year ago. Its energy segment, which sells solar panels, batteries, and energy storage systems, posted $2.41 billion in revenue, down 12% from $2.73 billion a year earlier.
Tesla has taken numerous steps to try and boost its business, including pivoting to humanoid robots, supercomputers, and artificial intelligence. Earlier this year, the company announced plans to develop an entirely new electric sport utility vehicle (SUV) that is smaller and cheaper to try and boost its sales.
Is TSLA Stock a Buy?
Tesla’s stock has a consensus Hold rating among 30 Wall Street analysts. That rating is based on 13 Buy, 11 Hold, and six Sell recommendations issued in the last three months. The average TSLA price target of $413.89 implies 6% upside from current levels. These ratings could change after the company’s financial results.
