01—Abstract
Summary
Summary of the 10-K filed January 29, 2024. Cited figures are marked; the original filing is the authoritative source.
Tesla's 2023 Annual Report highlights a year of significant growth and strategic advancements.
The company's total revenues increased by 19% to $96.77 billiona, driven primarily by a 17% rise in automotive sales. This growth was fueled by higher delivery volumes, particularly for the Model Y, though partially offset by price reductions. The energy generation and storage segment also saw robust growth, with revenues up 54%, largely due to increased Megapack deployments.
Despite these revenue gains, gross margins across segments, especially automotive, saw a notable decrease due to pricing strategies and increased costs. Operationally, Tesla produced over 1.84 million consumer vehicles and delivered over 1.80 million in 2023. The company continues to invest heavily in research and development, particularly in Cybertruck pre-production, AI, and new vehicle platforms, with capital expenditures expected to exceed $10 billionb in 2024.
Tesla also reported a substantial net income of $14.97 billionc, which included a significant one-time tax benefit from releasing a valuation allowance on deferred tax assets. The company ended the year with strong liquidity, holding $29.09 billion in cash and cash equivalents and investments.
02—Key points
Key Highlights
- Total revenues increased 19% year-over-year to $96.77 billion, primarily driven by a 17% increase in automotive sales revenue.
- Energy generation and storage segment revenue grew 54% year-over-year to $6.04 billion, largely due to increased Megapack deployments.
- Automotive gross margin decreased significantly from 28.5% in 2022 to 19.4% in 2023, mainly due to lower average selling prices.
- Production and deliveries of consumer vehicles reached 1,845,985 and 1,808,581 respectively in 2023.
- Net income attributable to common stockholders was $14.997 billion, including a $5.93 billion tax benefit from releasing a valuation allowance on deferred tax assets.
- Capital expenditures increased to $8.90 billion in 2023, with expectations for 2024 capital expenditures to exceed $10 billion.
- The company ended 2023 with $29.09 billion in cash, cash equivalents, and investments, indicating strong liquidity.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Tesla, Inc. kept $0.15.
- Revenue$96.77B100.0%
- Cost of revenue−$79.11B81.8%
- Gross profit$17.66B18.2%
- Operating costs−$8.77B9.1%
- Operating income$8.89B9.2%
- Interest, other & tax$6.11B6.3%
- Net income$15.00B15.5%
Where FY2023 revenue went
$96.77B- Cost of revenue: $79.11B, 82% of revenue
- Operating income: $8.89B, 9.2% of revenue
- R&D: $3.97B, 4.1% of revenue
- SG&A: $4.80B, 5.0% of revenue
Kept 9.2% as operating incomeOperating income $8.89B · 9.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed January 29, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $96.77B$81.46B | +18.8% |
| Cost of Revenue | $79.11B$60.61B | +30.5% |
| Gross Profit | $17.66B$20.85B | −15.3% |
| R&D Expenses | $3.97B$3.08B | +29.1% |
| SG&A Expenses | $4.80B$3.95B | +21.6% |
| Operating Expenses | $8.77B$7.20B | +21.8% |
| Operating Income | $8.89B$13.66B | −34.9% |
| Interest Expense | $156.00M$191.00M | −18.3% |
| Net Income | $15.00B$12.56B | +19.4% |
| EPS (Basic) | $4.73$4.02 | +17.7% |
| EPS (Diluted) | $4.30$3.62 | +18.8% |
| Shares Outstanding (Basic) | 3.17B3.13B | +1.4% |
| Shares Outstanding (Diluted) | 3.48B3.48B | +0.3% |
05—Questions
Frequently Asked Questions
What were the key drivers of Tesla's revenue growth in 2023?
Tesla's revenue growth in 2023 was primarily driven by an increase in automotive sales, which rose 17% year-over-year, due to higher delivery volumes, particularly for the Model Y. The energy generation and storage segment also contributed significantly with a 54% revenue increase, mainly attributed to expanded Megapack deployments.
How did Tesla's profitability metrics change in 2023 compared to 2022?
While Tesla's total revenues increased, its automotive gross margin saw a significant decline from 28.5% in 2022 to 19.4% in 2023. This reduction was largely due to the company's strategy of implementing price reductions across its vehicle lineup. However, net income attributable to common stockholders increased to $14.997 billion, boosted by a substantial one-time tax benefit.
What is Tesla's outlook for capital expenditures in 2024?
Tesla anticipates its capital expenditures to exceed $10 billion in 2024, reflecting continued significant investment in global factory expansion, new product development (including the next-generation platform), battery cell manufacturing, and scaling its Supercharger and service infrastructure.
How is Tesla managing its supply chain and manufacturing challenges?
Tesla's report indicates ongoing efforts to manage supply chain risks by developing close relationships with suppliers and qualifying multiple sources where possible. The company is also working to control manufacturing costs through vertical integration, process improvements, and localization of production. However, risks related to component shortages and production ramp delays remain a stated concern.
06—Continue