Tesla Inc (TSLA) q3 2023 Earnings Report

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Tesla Inc

TSLA

$481.20 -0.45%

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

Q3 2023

Published: Oct 23, 2023

Earnings Highlights

Revenue of $23.35B up 8.8% year-over-year
EPS of $0.53 decreased by 44.8% from previous year
Gross margin of 17.9%
Net income of 1.85B
""reducing the cost of our vehicles is our top priority," - Vaibhav Taneja, CFO" - Vaibhav Taneja

TSLA

Tesla Inc

Period Q3 2023

Currency USD

Report Type Quarterly Earnings

Generated Dec 22, 2025

Executive Summary

In Q3 2023, Tesla Inc (TSLA) reported a revenue of $23.35 billion, reflecting an 8.84% increase year-over-year but a 6.33% decrease quarter-over-quarter, highlighting pressures from economic uncertainty and declining vehicle prices. Net income of $1.85 billion represents a sharp decline of 43.71% YoY, marking significant challenges in maintaining profitability-driven margins. Management emphasized the ongoing transition toward sustainable production while acknowledging elevated costs due to factory upgrades and rising interest rates that impacted consumer affordability.

Key Performance Indicators

Revenue

Increasing

23.35B

QoQ: -6.33% | YoY: 8.84%

Gross Profit

Decreasing

4.18B

17.89% margin

QoQ: -7.83% | YoY: -22.37%

Operating Income

Decreasing

1.76B

QoQ: -26.47% | YoY: -52.17%

Net Income

Decreasing

1.85B

QoQ: -31.45% | YoY: -43.71%

EPS

Decreasing

0.58

QoQ: -31.76% | YoY: -44.76%

Revenue Trend

Margin Analysis

Financial Highlights

Revenue: $23.35 billion (YoY Increase: 8.84%, QoQ Decrease: 6.33%)
Gross Profit: $4.18 billion (Gross Margin: 17.8%, YoY Decrease: 22.37%, QoQ Decrease: 7.83%)
Operating Income: $1.76 billion (Operating Margin: 7.55%, YoY Decrease: 52.17%, QoQ Decrease: 26.47%)
Net Income: $1.85 billion (Net Margin: 7.93%, YoY Decrease: 43.71%, QoQ Decrease: 31.45%)
EPS: $0.58 (Diluted EPS: $0.53)
Current Ratio: 1.69
Debt: $8.19 billion, providing a low debt ratio of 0.0394, enhancing financial stability amid volatility.
Free Cash Flow: $849 million, reinforcing cash position amid operational changes.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	23.35B	8.84%	-6.33%
Gross Profit	4.18B	-22.37%	-7.83%
Operating Income	1.76B	-52.17%	-26.47%
Net Income	1.85B	-43.71%	-31.45%
EPS	0.58	-44.76%	-31.76%

Key Financial Ratios

Gross Profit Margin

Weak

17.90%

Gross profit margin is below industry norms, profitability concerns

Operating Profit Margin

Fair

7.55%

Operating margin is moderate, room for improvement in cost management

Net Profit Margin

Fair

7.94%

Net profit margin is moderate, room for improvement in cost management

Return on Assets

Weak

1.97%

Return on assets suggests inefficient capital allocation

Return on Equity

Weak

3.47%

Return on equity suggests inefficient capital allocation

Current Ratio

Healthy

1.69

Current ratio shows adequate liquidity to meet short-term obligations

Debt to Equity

Conservative

0.07

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

P/E Ratio

High Growth

107.22x

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

Price to Book

High Premium

14.86x

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
Q3 2023	23,350.00	0.53	+8.8%	View

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Tesla Inc (TSLA) Q3 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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