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Elon Musk, CEO of SpaceX and Tesla and owner of Twitter, at the Innovation and Startup Specialization at the Porte de Versailles Exhibition Center in Paris, France, June 16, 2023 attend the Viva Technology Conference.
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Tesla report income After the bell, record quarterly sales were recorded, but margins were lower thanks to price cuts and incentives. Stock prices rarely change in after-hours trading.
- Earnings: $24.93 billion, compared to $24.47 billion estimated by Refinitiv.
- Earnings: Adjusted to 91 cents per share, compared to Refinitiv’s estimate of 82 cents per share.
Net income (GAAP) was $2.7 billion, up 20% year-over-year. Meanwhile, operating profit fell 3% year-over-year to $2.4 billion.
By comparison, in the first quarter of 2023, Tesla reported a net profit of $2.51 billion on revenue of $23.33 billion. During the second quarter of last year, Tesla reported: net income Sales were $16.93 billion, $2.27 billion.
“We are still aiming to deliver 1.8 million vehicles this year, but due to the summer holidays associated with many factory upgrades, we will have to wait until the third quarter,” Chief Executive Officer Elon Musk said in an earnings call. We expect production to drop slightly,” he said.
Earlier this month, Tesla said it had produced 479,700 electric vehicles, reporting total second-quarter deliveries of 466,140. Shipments are the closest to Tesla’s reported sales figures.
These deliveries exceeded Wall Street expectations and were driven in part by incentives and discounts. Correspondingly, the operating margin he recorded was 9.6%, the lowest in at least five quarters. Total gross margin was 18.2%, also the lowest for the quarter.
Tesla said in a shareholder statement that the decline in second-quarter profit margins was due to lower average selling prices “due to mix and pricing” of the cars it sells, as well as costs associated with increasing production of its own-designed battery cells. explained. , among other factors he is known as 4680 Cell.
Revenue from Tesla’s core automotive business grew 46% year-over-year to $21.27 billion, up about 6.5% quarter-on-quarter. Energy generation and storage revenues from photovoltaic installations and backup batteries increased 74% year-on-year to $1.51 billion. With more vehicles on the road, Tesla’s “service and other” revenue, which includes out-of-warranty vehicle repairs, rose 47% to $2.15 billion.
Tesla’s R&D spending rose to $943 million ($771 million in the first quarter), with the company focusing on “being at the forefront of AI development,” in its shareholder materials, and “Dojo.” I wrote that I started producing training. computer. “
Tesla’s Model Y crossover is the world’s best-selling car in the first quarter of 2023.
In an investor note, Tesla said Cybertruck’s “factory tools” are on track, but the company is currently producing only “release candidate” builds. The news could disappoint fans who were eagerly awaiting the start of deliveries of the angular, sci-fi-inspired pickup truck first touted by Elon Musk in 2019. In recent days, Tesla posted a photo on Twitter of factory workers swarming around him through his social media accounts. A Cybertruck at a facility in Austin, Texas. The tweet read, “First Cybertruck built in Giga Texas!”
In addition to Cybertruck details, investors will also be interested in an update on the production of Tesla’s 4680 battery cells. This is seen as important in expanding production of the company’s Class 8 semi-trucks and Cybertrucks. About the development of Tesla’s humanoid robot called Teslabot or Optimus. And about the new factory Tesla announced it would build in Mexico.
Investors also want updates on the company’s progress towards developing self-driving and robotaxi-enabled vehicles. Musk touted Tesla’s self-driving ambitions in 2016, but said the company would implement a hands-free trip across the United States by the end of 2017. Tesla has yet to fulfill its mission.
The company’s earnings report is scheduled to begin at 5:30 p.m. ET.