Tesla Q1 results: Dan Ives is cautious for current fiscal quarter

Tesla Inc (NASDAQ: TSLA) reported its financial results for the first quarter on Wednesday that handily beat the Wall Street expectations. Shares popped up over 5.0% in after-hours trading.

Notable figures in Tesla Q1 earnings report

• Earned $3.2 billion in fiscal Q1 that translates to $2.86 per share.
• In the same quarter last year, it had earned $438 million (39 cents a share).
• Adjusted for nonrecurring items, per-share earnings stood at $3.22.
• Revenue soared 81% YoY to $18.6 billion, as per the earnings press release.
• FactSet consensus was for $2.26 of adjusted EPS on $17.85 billion in sales.
• Automotive gross margin climbed to 32.9% in the recent fiscal quarter.

Earlier in April, Tesla said it delivered lower-than-expected 310,048 vehicles in Q1 as COVID resurgence in China pushed its Shanghai factory into temporarily shutting down.

Wedbush’s Dan Ives reacts to Tesla Q1 results

According to Wedbush Securities’ Dan Ives, Shanghai will likely be a significant headwind for Tesla in the current fiscal quarter. On CNBC’s “Closing Bell”, he said:

It’s all about deliveries for Q2. I think China could be a 50,000 to 60,000 headwind for Q2. Then there could be significant, incremental expenses related to supply chain, especially coming out of China.

Ives forecasts an EPS of $1.86 a share for the second quarter versus the Street at $2.26 a share. He, however, expects the issues to be resolved by the second half of 2022 and remains bullish on the stock for the longer term with a price target of $1,400 or roughly 35% up from here.