3 Key Takeaways From Tesla’s Q1

$Tesla(TSLA.US)$
Takeaway No. 1: TSLA Stock Can Rally on Revenue Growth
The most important takeaway from the report is that Tesla managed to beat analyst expectations on both the top and bottom lines this quarter. It reported adjusted earnings per share at $3.22 versus the expected $2.26. Revenue reached $18.76 billion, better than the $17.8 billion Wall Street had projected. Its reported automotive revenue of $16.86 billion represents a gain of roughly 87% from one year ago. Automotive gross margins increased by almost 33%, with Tesla’s reported gross profit reaching $5.54 billion.
Takeaway No. 2: Tesla Faced Declines in Energy Segment
The news wasn’t so good for Tesla’s energy holdings.
The company’s solar deployments have decreased by almost 50%, coming in at 48 megawatts (MW). Its energy storage deployment of 846 megawatt hours represented a 90% increase year over year but fell sequentially.
Tesla’s energy update was certainly less than ideal. However, investors should take some comfort in the fact that these declines were not from the automotive segment, from which Tesla generates most of its revenue.
Takeaway No. 3: Musk Drives Speculation
Elon Musk hasn’t been present for every Tesla earnings call. However, he confirmed on social media earlier on Wednesday that he would speak in the after-hours discussion. Investors have been particularly excited because they are hoping for an update on his bid to acquire $Twitter (Delisted)(TWTR.US)$ . His recent tweets have fueled plenty of speculation that big news is coming soon regarding a tender offer. His tactic of keeping investors guessing has so far worked well.