$Tesla(TSLA.US): Despite poor operating leverage associated with TSLA’s 1Q deliveries miss (-13% YoY) there are 5 P&L lines that TSLA can legitimately “manage” to the extent it wants to report a higher adj EPS:
- Reg Credits (ranged from $282M - $890M over past eight quarters)- SG&A (timing of expense)- Restructuring/Other operating expense- Other non-operating expense (weaker U.S. dollar likely to produce gains)- Tax rate In the end, 1Q Adj EPS results don’t matter as much as 1Q auto gross margins ex-reg credits (which reflects order flow and demand) and mgmt’s guidance for FY’25 deliveries, which reflects mgmt’s assessment of brand taint (will blame any reduction on tariffs and economic uncertainty).The copyright of this article belongs to the original author/organization.
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