Coinspeaker
Tesla Reports Record Earnings Report for Q2 2023
Electric vehicle (EV) giant Tesla Inc (NASDAQ: TSLA) has posted its earnings report for Q2 of 2023, showing the company hit a quarterly revenue record. The report showed interesting increases across several key metrics.
For instance, Tesla reported revenue of $24.93 billion for Q2 2023, higher than the $24.47 billion Refinitiv analysts expected. In addition, earnings per share came in at 91 cents, over the expected 82 cents per share. Tesla’s net income (GAAP) also climbed, ending at a 20% increase from last year’s $2.70 billion.
Tesla said its operating margin sustained a healthy 10% despite price reductions in Q1 and Q2. The company attributed the healthy performance to several efforts at cost reduction, increased production at the Texas and Berlin factories, and commendable performance across several other businesses.
Other key figures recorded in Q2 2023 include a 21% year-over-year (YoY) increase in operating expenses, from $1.77 billion to $2.13 billion. The company’s second-quarter operating expense is a 15.5% increase from the $1.84 billion from Q1.
Tesla’s report also contains information on deliveries. The total number of deliveries increased 83% YoY to 466,140 from 254,695 in Q2 2022. Tesla’s Q2 deliveries also increased from Q1 by 10.2%. On deliveries, CEO Elon Musk said Tesla is unwavering on its target for the year. Musk stated:
“We continue to target 1.8 million vehicle deliveries this year, but expect Q3 production will be a little bit down because we’ve got summer shutdowns for a lot of factory upgrades.”
Tesla also revealed it spent $943 million on research and development, up from $771 million in Q1. As of June 30, Tesla’s total liabilities hit $38.4 billion, up only 0.5% from March 31.
Tesla Moves in Q2 2023
The second quarter was eventful for the company, making several headlines at various intervals. For instance, Tesla recently announced it has now built the first Cybertruck at the gigafactory in Texas. Tesla initially announced the Cybertruck in 2019 and after years of delays, revealed last November that production would begin this year. Despite a whistleblower revealing that Tesla had run into problems with the Cybertruck’s engineering and basic design, the company received over 1.5 million reservations as of November last year.
Tesla plans to begin production sometime this year and promises to produce between 250,000 and 500,000 Cybertrucks annually. According to California-based vehicle valuation and research company Kelley Blue Book, the Cybertruck’s single motor and rear-wheel-drive version would likely retail for $50,000. However, the all-wheel-drive model with a range of over 300 miles could hit $60,000. An advanced version, with three electric motors and a range of over 500 miles, could cost $70,000.
Tesla Q2 2023 updates include a price slash early this month. The company reduced prices in Japan, dropping the Model 3 by about 3% and the Model Y by approximately 4%. Tesla cut these prices barely two months after earlier increasing the prices in the country. The company left the prices of its Model X and Model S untouched.
