Electric vehicle maker Tesla reported its Q2 2023 earnings results today, beating analyst estimates and achieving record revenue and profits despite economic challenges.
Total revenue for the quarter rose 47% year-over-year to $24.9 billion, driven by increased vehicle deliveries. Automotive revenue from vehicle sales hit $21.3 billion, up 46% from Q2 2022. Gross margins remained healthy at 18.2% as the company offset headwinds like price reductions with cost cutting and production ramps at new factories.
Net income rose 20% to $2.7 billion, resulting in $0.78 GAAP diluted EPS. Tesla achieved an operating margin of 9.6%. The company generated $3.1 billion in free cash flow, ending the quarter with a cash position of $23.1 billion.
Tesla delivered a record 466,000 vehicles in Q2, up 83% from a year ago. Model 3 and Y made up 97% of deliveries. Production also hit a new high of 480,000 vehicles despite supply chain difficulties and plant startups.
The company said its Berlin and Austin factories continue to ramp production of the Model Y. The Cybertruck factory in Austin is on track to begin production later this year. On the technology side, Tesla has started manufacturing its in-house Dojo supercomputer to power AI training.
In the earnings update, Tesla maintained its target to grow deliveries by 50% per year over a multi-year horizon. For 2023, it expects to surpass 50% growth and deliver around 1.8 million vehicles. The company plans to continue expanding capacity and managing costs to strengthen its finances.
Overall, Tesla delivered robust growth and profits in a challenging economic environment. With strong demand, new factories coming online, and leadership in electric and autonomous driving technology, Tesla appears poised for continued success.
