Tesla Q2 Earnings Beat Expectations Amid Record Quarter

Tesla Q2 Earnings Beat Expectations Amid Record Quarter

Tesla posted its Q2 2023 earnings report after markets closed July 19. 

Tesla had yet another record quarter in terms of vehicle deliveries and production, producing 479,700 vehicles and delivering 466,140, despite the company’s ongoing aggressive pricing strategies and some Model 3 customers potentially holding off on purchases due to the upcoming Project Highland update.

In the second quarter, Tesla posted revenues of $24.93 billion. In comparison, analysts polled by FactSet estimated Tesla would report sales of $24.32 billion. Overall, Tesla’s revenue grew 47% year-over-year.

Tesla’s non-GAAP earnings per share for the first quarter of 2023 was listed at $0.91. In comparison, analysts were calling for adjusted earnings of $0.79 cents a share. 

Tesla’s operating income decreased slightly YoY to $2.4 billion in the second quarter, which resulted in a 9.6% operating margin. Tesla’s Q2 2023 Update Letter noted operating income was affected by several factors, such as reduced ASP due to mix and pricing, cost of production ramp of 4680 cells and other related charges, and an increase in operating expenses driven by Cybertruck, AI and other large projects.

Tesla’s war chest continued to grow in the second quarter. The company’s quarter-end cash, cash equivalents and investments increased by $700 million to $23.1 billion in Q2 2023. This was driven by free cash flow of $1 billion, which was partially offset by other financing activities, including debt repayments.

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