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Sep 30, 2023

Tesla Q3 2023 Earnings Report

Tesla's profitability decreased due to pricing and increased operating expenses, but revenue increased driven by vehicle deliveries. Cash increased driven by financing activities and free cash flow.

Key Takeaways

Tesla's Q3 2023 results showed revenue growth of 9% year-over-year, reaching $23.35 billion. However, profitability metrics declined, with operating margin at 7.6%. The company focused on cost reduction, free cash flow generation, and investments in AI and growth projects. Cash and investments increased to $26.1 billion.

Operating margin was 7.6% in Q3.

GAAP operating income reached $1.8B in Q3.

Free cash flow was $0.8B in Q3.

Cash and investments increased by $3.0B QoQ to $26.1B.

Total Revenue
$23.4B
Previous year: $21.5B
+8.8%
EPS
$0.66
Previous year: $1.05
-37.1%
Gross Margin
17.9%
Operating Margin
7.6%
0
Cash Flow from Operations
$3.31B
0
Gross Profit
$4.18B
Previous year: $5.38B
-22.4%
Cash and Equivalents
$16.6B
Previous year: $19.5B
-15.1%
Free Cash Flow
$848M
Previous year: $3.3B
-74.3%
Total Assets
$93.9B
Previous year: $74.4B
+26.2%

Tesla

Tesla

Tesla Revenue by Segment

Forward Guidance

Tesla plans to grow production as quickly as possible, aligning with a 50% CAGR target. They anticipate remaining ahead of this target in 2023, aiming for around 1.8 million vehicles. The company has ample liquidity to fund its product roadmap and long-term expansion, expecting hardware-related profits to be accompanied by AI and software profits. Cybertruck deliveries are on track for later this year, and progress continues on the next-generation platform.

Positive Outlook

  • Plans to grow production as quickly as possible.
  • Expecting to remain ahead of 50% CAGR target in 2023 with around 1.8 million vehicles.
  • Ample liquidity to fund product roadmap and expansion plans.
  • Expect hardware profits to be accompanied by AI and software profits.
  • Cybertruck deliveries remain on track for later this year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income