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Jun 30, 2023

Tesla Q2 2023 Earnings Report

Tesla achieved record production and deliveries, with revenue approaching $25B.

Key Takeaways

Tesla's Q2 2023 was a record quarter with best-ever production and deliveries. Revenue approached $25B. Operating margin remained healthy at approximately 10%, reflecting cost reduction efforts and strong performance of Energy and Services & Other businesses.

Q2 2023 was a record quarter with best-ever production and deliveries.

Revenue approached $25B in a single quarter.

Operating margin remained healthy at approximately 10%, even with price reductions in Q1 and early Q2.

Commitment to being at the forefront of AI development entered a new chapter with the start of production of Dojo training computers.

Total Revenue
$24.9B
Previous year: $16.9B
+47.2%
EPS
$0.91
Previous year: $0.76
+19.7%
Operating Margin
9.6%
Previous year: 14.6%
-34.2%
Cash Flow from Operations
$3.07B
Previous year: $621M
+393.6%
Capital Expenditures
$2.06B
Gross Profit
$4.53B
Previous year: $4.23B
+7.1%
Cash and Equivalents
$15.9B
Previous year: $18.3B
-13.2%
Free Cash Flow
$1.01B
Previous year: $621M
+61.8%
Total Assets
$90.6B
Previous year: $68.5B
+32.2%

Tesla

Tesla

Tesla Revenue by Segment

Forward Guidance

Tesla plans to grow production as quickly as possible in alignment with the 50% CAGR target. For 2023, they expect to remain ahead of the long-term 50% CAGR with around 1.8 million vehicles for the year. Cybertruck remains on track to begin initial production later this year at Gigafactory Texas.

Positive Outlook

  • Planning to grow production as quickly as possible in alignment with the 50% CAGR target.
  • Expect to remain ahead of the long-term 50% CAGR with around 1.8 million vehicles for the year.
  • Ample liquidity to fund product roadmap, long-term capacity expansion plans and other expenses.
  • Will manage the business such that they maintain a strong balance sheet during this uncertain period.
  • Cybertruck remains on track to begin initial production later this year at Gigafactory Texas.

Challenges Ahead

  • Uncertainties in future macroeconomic and regulatory conditions arising from the current global pandemic.
  • Risk of delays in launching and manufacturing products and features cost-effectively.
  • Consumers’ demand for electric vehicles generally and our vehicles specifically.
  • The ability of suppliers to deliver components according to schedules, prices, quality and volumes acceptable.
  • Risks relating to international expansion.

Revenue & Expenses

Visualization of income flow from segment revenue to net income