Tesla Q1 earnings show beat on both top and bottom lines

Yahoo Finance's Pras Subramanian breaks down Tesla's Q1 earnings.

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BRAD SMITH: Welcome back to Yahoo Finance Live, everyone. Tesla earnings coming in after the bell here. And you're taking a look at shares reacting, moving higher by about 3.8% right now. Pras Subramanian is standing by with the details of the report. Pras.

PRAS SUBRAMANIAN: Yeah, Brad. Stock moving higher here. A lot of good news out of this Q1 report. Let's break it down. On the top line, we're seeing $18.8 billion. That's topping estimates of 17.9 billion, that Wall Street expected on EPS basis. 3.32 versus $2.27. So another big beat there on the bottom line. GAAP net income also, 2.3 billion. Another-- I'm sorry. 2.094 billion. Nice work there. Sorry. I'm sorry. Strike that. I'm sorry. Free cash flow. Free cash flow. 2.38 billion. That's a huge beat over the 671 million estimate.

I do not have the GAAP net income yet. Automotive gross margin, also above 32.9%, another strong number there. Looking at deliveries here, still at 310,000 amount for Q1. They're still seeing a 50% compound annual growth rate. That's what they've been mentioning for several quarters now. But also, the company mentioned that supply chain issues are still around. Supply chains remain persistent.

They're going to continue through 2022. From the actual deck, they said in Q1, we saw a continuation of global supply chain, transportation, labor, and other manufacturing challenges limiting our ability to run our factories at full capacity.

So Brad, on the call, we're going to hear more about that. Elon Musk said that he'll actually be on the call there. So want to hear more about those production shutdowns, anything in China. They have not updated their production outlook. You still see 450,000 vehicles to be produced in China this year. They haven't changed that. So maybe we'll hear more about that. They mentioned that the Cybertruck industrialization is continuing. They're still working on Cybertruck for 2023 release, and that the model Y and Giga Texas are actually coming out right now with the new 4680 battery pack.

So we'll see what we're going to hear more about on the call. Also want to hear about price hikes too. A lot of persistent price hikes in Q1. We'll see that actually is mentioned by Musk and company on the call as well.

BRAD SMITH: Yahoo Finance's Pras Subramanian. We're going to have more on Tesla a little bit later on. Appreciate it, Pras.