Tesla - Short-term pain, long-term gain?

Perhaps the most anticipated Q1'23 results of them all.

But behind the numbers, perhaps, Tesla is weighing in on a longer-term game plan.

Here are my observations

Overall revenue is higher by +24% YoY, but down by -4% QoQ.

As Tesla sought to continue its price cuts, it comes with no surprise that the gross margins will be affected.

Out of its 3 subcategories, energy generation, and storage revenue showed the fastest growth rate YoY, followed by services, while automotive revenue slumped QoQ due to the price cuts.

As price cuts make cars more affordable, it inherently grew Tesla's market share. Tesla's market share in the US/Canada is growing towards the 4% mark, while trends in Europe and China seem to tag along as well.

No one can debate that Tesla would always try to deliver more vehicles each quarter. But for the last few months, it has been doing so through price slashing as the entire world is in a high-interest rate environment.

These price slashes have a visible dent in Tesla's margin, and in Elon Musk's own words, it will continue.

“We’ve taken a view that pushing for higher volumes and a larger fleet is the right choice here versus a lower volume and higher margin,” Musk during an earnings call with analysts on Wednesday.

But that said, with the recent price correction, do you think it's time to load up more?

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