Tesla (TSLA) Q2 2023 Earnings Report Exceeds Expectations with Record Quarter

Key Points

• 😄 Tesla (NASDAQ:TSLA) posted its Q2 2023 earnings report after markets closed, beating expectations.
• 🚗 Tesla had a record quarter in vehicle deliveries and production.
• 💰 Tesla’s Q2 2023 revenue was $24.93 billion, growing 47% YoY.
• 💹 Tesla’s non-GAAP earnings per share for Q2 2023 was $0.91, higher than the expected $0.79.
• 📈 Tesla’s operating income decreased slightly YoY to $2.4 billion, resulting in a 9.6% operating margin.
• 💵 Tesla’s quarter-end cash, cash equivalents, and investments increased to $23.1 billion in Q2 2023.
• 📄 You can find Tesla’s Q2 2023 Update Letter in the provided link.

Tesla (NASDAQ:TSLA) posted its Q2 2023 earnings report after markets closed today. The results, which were discussed in the Q2 2023 Update Letter, were released after the closing bell on Wednesday, July 19, 2023.

Tesla’s earnings come on the heels of yet another record quarter in terms of vehicle deliveries and production. In the first quarter, Tesla produced 479,700 vehicles and delivered 466,140. This was despite the company’s ongoing aggressive pricing strategies and some Model 3 customers potentially holding off on their vehicle purchases due to the upcoming and highly-anticipated Project Highland update.

The following is a quick overview of Tesla’s Q2 2023 earnings results.

REVENUE

In the second quarter, Tesla posted revenues of $24.93 billion. In comparison, analysts polled by FactSet estimated that Tesla will report sales of $24.32 billion in Q2 2023. Overall, Tesla’s revenue grew 47% year-over-year, which is quite impressive.

EARNINGS PER SHARE

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. 

PROFITABILITY

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 that 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.

CASH

Tesla’s war chest continued to grow in the second quarter. The company’s quarter-end cash, cash equivalents, and investments increased sequentially 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.

Below is Tesla’s Q2 2023 Update Letter.