Early Access

10-QPeriod: Q2 FY2023

Tesla, Inc. Quarterly Report for Q2 Ended Jun 30, 2023

Filed July 24, 2023For Securities:TSLA

Summary

Tesla, Inc. reported its financial results for the second quarter ended June 30, 2023, demonstrating robust top-line growth driven primarily by its automotive segment. Total revenues increased by 47% year-over-year to $24.9 billion, with automotive sales alone surging 49% due to higher delivery volumes of Model 3 and Model Y vehicles. Despite a significant increase in automotive sales, the gross margin for the automotive segment saw a notable decline from 27.9% in Q2 2022 to 19.2% in Q2 2023, largely attributable to lower average selling prices and factory utilization. However, the Energy Generation and Storage segment showed substantial growth, with revenues increasing 74% and gross margin improving significantly. Financially, Tesla maintained a strong liquidity position with $15.3 billion in cash and cash equivalents and short-term investments. Operating cash flow, though slightly down year-over-year, remained healthy. The company continued to invest heavily in capital expenditures, with $4.13 billion for the first six months of 2023, primarily for manufacturing facility expansion. Despite ongoing legal proceedings and investigations, Tesla appears to be navigating these challenges while focusing on scaling production and managing costs, signaling continued operational expansion and a commitment to its long-term mission.

Financial Statements
Beta
Revenue$24.93B
Cost of Revenue$20.39B
Gross Profit$4.53B
R&D Expenses$943.00M
SG&A Expenses$1.19B
Operating Expenses$2.13B
Operating Income$2.40B
Interest Expense$28.00M
Net Income$2.70B
EPS (Basic)$0.85
EPS (Diluted)$0.78
Shares Outstanding (Basic)3.17B
Shares Outstanding (Diluted)3.48B

Key Highlights

  • 1Total revenues surged 47% year-over-year to $24.9 billion in Q2 2023.
  • 2Automotive sales revenue increased 49% to $20.4 billion, driven by higher vehicle deliveries.
  • 3Energy Generation and Storage segment revenue more than doubled (105% increase) in the first six months of 2023.
  • 4Automotive gross margin declined significantly to 19.2% in Q2 2023 from 27.9% in Q2 2022.
  • 5Research and Development expenses increased 41% year-over-year in Q2 2023, reflecting investment in new products like Cybertruck and AI.
  • 6Cash and cash equivalents and short-term investments remained strong at $23.1 billion as of June 30, 2023.
  • 7Capital expenditures for the first six months of 2023 totaled $4.13 billion, indicating continued investment in manufacturing capacity.

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