Gary Zhou 
Key Points
- 😃 Tesla is expected to release its Q2 2023 earnings results today, and expectations are high due to positive updates and record vehicle deliveries.
- 💹 Tesla stock has surged 58% in the past three months, adding over $100 in TSLA stock price for shareholders and pushing its market cap close to a trillion dollars.
- 📈 Wall Street expects Tesla to report top-line revenue of $24.56 billion and adjusted EPS of $0.82, with a 45% gain year-over-year.
- 🚗 Tesla achieved impressive global production and delivery numbers in Q2, setting all-time records with 479,700 units produced and 466,140 units delivered.
- 📊 Analysts predict that Tesla’s auto gross margin for Q2 will likely be less than the first quarter, but they anticipate a rebound in the coming quarters.
- 🤖 Tesla’s leadership in AI-based self-driving software and the introduction of updated products indicate potential for growth despite price reductions.
Tesla (NASDAQ:TSLA) is set to release its Q2 2023 earnings later today, and anticipation is high due to another record-breaking quarter in terms of vehicle deliveries and positive company updates, including charging deals with various automakers and providers. With a 58% surge in its stock price over the past three months, Tesla’s market cap reached $929 billion as of Tuesday’s close, bringing it close to the trillion-dollar mark once again.
Analysts on Wall Street expect Tesla to report top-line revenue of $24.56 billion and adjusted EPS of $0.82 for Q2. This revenue figure reflects a slight gain from Q1 but an impressive 45% gain year-over-year. Tesla is also anticipated to post adjusted net income of $2.89 billion, slightly less than Q1 but around $300 million more than Q2 2022.
Earlier this month, Tesla announced a remarkable global production of 479,700 units and deliveries totaling 466,140 for Q2. Both production and delivery numbers set all-time records for the company during the quarter, surpassing Wall Street’s estimates and the previous quarter’s figures.
Wedbush analyst Dan Ives predicts that Tesla’s auto gross margin for Q2 will be lower than Q1. However, Ives believes this will be the trough quarter for Tesla’s gross margin, with a likely rebound in the coming quarters towards the 20% level by 2024.
Jefferies analyst Philippe Houchois also agrees with the consensus, expecting Q2 to represent a low point for Tesla’s auto gross margin. He noted the importance of Tesla’s leadership in AI-based self-driving software and highlighted the potential for growth with updated products like the Model 3’s Project Highland update and Tesla’s limited market share in the mid-size car segment, despite price reductions.
