Elon Musk, a close aide of U.S. President Donald Trump, leads the electric vehicle company Tesla, which reported results far below market expectations in the first quarter of this year.
According to Tesla's earnings report on the 22nd (local time), total revenue in the first quarter (January to March) was $19.335 billion (approximately 27.6336 trillion won), a 9% decrease compared to the same period last year. The average forecast on Wall Street, compiled by financial data firm LSEG, predicted revenue of $21.11 billion.
Tesla's net profit for the first quarter was $409 million (approximately 584.5 billion won), a sharp decline of 71% from $1.39 billion in the same period last year, and earnings per share (EPS) also decreased by 40% to $0.27 (approximately 386 won). The average EPS estimate on Wall Street was $0.39.
Tesla's operating profit margin was recorded at 2.1%, down 3.4 percentage points from a year ago (5.5%) and down 4.1 percentage points from the previous quarter (6.2%).
By institutional sector, revenue from Tesla's core automotive business was $13.967 billion (approximately 19.9616 trillion won), a decrease of 20% compared to the same period last year. The energy sector and services & other revenues increased by 67% and 15%, respectively, compared to a year ago.
Tesla cited the poor performance in vehicle deliveries, production of the new Model Y across all four factories, and a reduction in the average selling price (ASP) of vehicles as factors for its disappointing results. In fact, the number of deliveries in the first quarter was 336,681 units, a 13% decrease compared to the same period last year.