Tesla (TSLA) releases Q2 2023 results on revenue and earnings

Good afternoon, everyone, and welcome to Tesla's second-quarter 2023 Q&A webcast. My name is Martin Viecha, VP of investor relations, and I'm joined today by Elon Musk, Zachary Kirkhorn, and a number of other executives. Our Q2 results were announced at about 3 p.m. Central Time in the update deck we published at the same link as this webcast.

During this call, we will discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially due to a number of reasons and uncertainties, including those mentioned in our most recent filings with the SEC. During the question-and-answer portion of today's call, please limit yourself to one question and one follow-up.

Tesla is a global leader in EVs and has a portfolio of products and technologies that help it grow and defend its market share. While TSLA is a solid long-term investment, the recent run in its share price could limit the upside potential in the short term. 

Wall Street analysts maintain their cautiously optimistic outlook on TSLA stock following Q2 earnings. TSLA stock has received 12 Buy, 11 Hold, and four Sell recommendations for a Moderate Buy consensus rating. Analysts’ average price target of $252.08 implies 13.45% downside potential from current levels. 

Tesla TSLA has outperformed estimates on both top and bottom lines in its Q2 report after today’s close, earning 91 cents per share — 8 cents higher than the Zacks consensus, and nicely beyond the 76 cents per share in the year-ago quarter — on revenues of $24.93 billion, better than the $24.88 billion expected. The EV leader kept full-year delivery guidance in-line with expectations, and gross margins, ex-zero-emissions credits came in up +18.2%, an improvement on the +16.9% estimated. This is lower than the +19.3% reported the previous quarter, which may be due to lowered price points for sold vehicles.

Tesla reported earnings after the bell, showing a record for quarterly revenue but lower margins thanks to price cuts and incentives.

The stock price remained flat after the initial report, but began dropping during the earnings call as CEO Elon Musk and other executives failed to deliver precise specs and start of delivery dates for the Cybertruck, and for a robotaxi-ready vehicle. Musk and other execs also said during the call that vehicle production would slow down during Q3 due to shutdowns for factory improvements. It’s now down about 5% after hours.

Gross margins are down as expected, but only to 18.2% – down from 19.3% the previous quarter.

Tesla was still able to deliver a strong 9.6% operating margin and added about $700 million to its cash and investment position, which now sits at an impressive $23 billion.

 Read more

 Sarah H

Also on site :

• Trump endorses Steven Hilton in California governor's race
• IAEA: Continued military activity near Bushehr Plant could cause radiological accident
• PM visits Benha Investment Zone’s industrial products exhibition