Automotive revenue, Tesla’s core segment, reached $19.96 billion in the quarter, up 18% from last year. Total revenue rose 24%. Revenue from automotive regulatory credits during the first three months of 2023 amounted to $521 million, down from $679 million in the first quarter of last year.
On an earnings call, CEO Elon Musk emphasized an “uncertain” macroeconomic environment that could impact people’s car-shopping plans. During a question-and-answer session with analysts, Musk said he expected 12 months of “stormy weather” in the economy. He cautioned that, “Every time that the Fed raises interest rates, that’s the equivalent to an increase in the price of a car.” He also said, whenever there’s uncertainty in the economy, people will generally postpone “big new capital purchases like a new car.”
He said, “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,” but noted he expects Tesla vehicles “over time will be able to generate significant profit through autonomy.”
