Tesla's Q1 Profits Could Beat But 2023 EPS Should Plunge by 35%

Consensus is a bit low for Q1, but overly optimistic for the full year as Tesla continues to cut prices and likely won't stop

This is the trickiest quarter to estimate Tesla’s earnings due to so many moving parts and profitability mattering more than actual EPS. Here are the three major factors which need to be nailed down:

• 15% price cuts in January may only lead to 7% sequential declines in average selling prices (ASPs), as Tesla has guided for ASPs to be over $47,000

• Costs per…