Tesla Inc (TSLA) Q2 2023 Earnings Report

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Tesla Inc

TSLA

$455.00 0.10%

Exchange: NASDAQ | Sector: Consumer Cyclical | Industry: Auto Manufacturers

Q2 2023

Published: Jul 24, 2023

Earnings Highlights

Revenue of $24.93B up 47.2% year-over-year
EPS of $0.78 increased by 16.4% from previous year
Gross margin of 18.2%
Net income of 2.70B
""...despite action taken to further improve vehicle affordability early in the quarter... we recognized – we realized per unit cost improvements in nearly every category, including material cost and commodities..."" - Zachary Kirkhorn

TSLA

Tesla Inc

Period Q2 2023

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

Executive Summary

In Q2 2023, Tesla Inc (TSLA) achieved record revenue of $24.9 billion, a 47.2% year-over-year (YoY) increase and a 6.85% quarter-over-quarter (QoQ) growth. The company's commitment to increasing vehicle affordability amidst high-interest rates led to a healthy operating margin of 10%. Despite facing macroeconomic challenges, Tesla retained its target of 1.8 million vehicle deliveries for the year. Elon Musk praised the production success of the Model Y, which became the best-selling vehicle globally, indicating strong consumer demand. The company continues to enhance its focus on advancements in AI and full self-driving technologies, positioning itself for substantial long-term growth and value creation.

Key Performance Indicators

Revenue

Increasing

24.93B

QoQ: 6.85% | YoY: 47.20%

Gross Profit

Increasing

4.53B

18.19% margin

QoQ: 0.49% | YoY: 7.06%

Operating Income

Decreasing

2.40B

QoQ: -9.95% | YoY: -2.64%

Net Income

Increasing

2.70B

QoQ: 7.56% | YoY: 19.65%

EPS

Increasing

0.85

QoQ: 6.25% | YoY: 16.44%

Revenue Trend

Margin Analysis

Financial Highlights

Key Financial Metrics (Q2 2023):
- Revenue: $24.9 billion (YoY: +47.2%, QoQ: +6.85%)
- Gross Profit: $4.5 billion (Gross Margin: 18.18%)
- Operating Income: $2.4 billion (Operating Margin: 9.6%)
- Net Income: $2.7 billion (Net Margin: 10.8%)
- EPS: $0.85 (Diluted EPS: $0.78)
- Cash & Cash Equivalents: $15.3 billion

EPS was positively impacted by the revenue growth and effective cost management. Operating expenses were $2.1 billion, reflecting increased investments in R&D and infrastructure, crucial for future growth. Despite a modest reduction in gross margin due to price cuts aimed at maintaining market share, Tesla's focus on cost reductions in material and logistics helped sustain profitability.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	24.93B	47.20%	6.85%
Gross Profit	4.53B	7.06%	0.49%
Operating Income	2.40B	-2.64%	-9.95%
Net Income	2.70B	19.65%	7.56%
EPS	0.85	16.44%	6.25%

Key Financial Ratios

Gross Profit Margin

Weak

18.20%

Gross profit margin is below industry norms, profitability concerns

Operating Profit Margin

Fair

9.62%

Operating margin is moderate, room for improvement in cost management

Net Profit Margin

Good

10.80%

Net profit margin is healthy and competitive within industry standards

Return on Assets

Weak

2.98%

Return on assets suggests inefficient capital allocation

Return on Equity

Fair

5.29%

Return on equity is acceptable but below top-tier companies

Current Ratio

Healthy

1.59

Current ratio shows adequate liquidity to meet short-term obligations

Debt to Equity

Conservative

0.03

Debt-to-equity shows conservative leverage and low financial risk

P/E Ratio

High Growth

76.77x

Very high P/E indicates aggressive growth expectations, higher risk

Price to Book

High Premium

16.23x

Very high premium suggests asset-light business model or lofty expectations

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q1 2025	19,335.00	0.12	-9.2%	View
Q4 2024	25,707.00	0.66	+2.2%	View
Q3 2024	25,182.00	0.62	+7.9%	View
Q2 2024	25,500.00	0.42	+2.3%	View
Q1 2024	21,301.00	0.34	-8.7%	View
Q2 2023	24,927.00	0.78	+47.2%	View

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Tesla Inc (TSLA) Q2 2023 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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