Dive Brief:
- Tesla reported $24.9 billion in revenue for Q2, a 47% year-over-year increase. The results were released in a shareholder deck on Wednesday.
- The automaker delivered 466,140 vehicles in the quarter, representing a YoY increase of 83% compared to 254,695 vehicles a year ago. It was the highest quarterly delivery number in the company's history.
- CEO Elon Musk also said the company was in talks with major automakers to license its Full Self-Driving autonomous driving technology.
Dive Insight:
Although Tesla’s earnings per share beat analysts expectations, recent price cuts and investments in new product development resulted in a decrease in the automaker’s operating margin from 11.4% to 9.6% compared to Q1.
Tesla’s adjusted basis earnings per share were $0.91, beating analyst expectations of $0.82, according to Reuters. Tesla’s energy storage deployments increased by 222% YoY in Q2 to 3.7 GWh.
As a result of rising vehicle deliveries, Tesla's cash, cash equivalents and investments balance at the end of Q2 was $23.1 billion, a 22% jump and all-time high for the automaker. Tesla reported operating cash flow of $3.1 billion. Free cash flow was just over $1 billion.
Income from operations decreased by 3% to $2.4 billion compared to Q1. The company attributed the drop to its recent price cuts and costs of ramping up battery cell production. Tesla also cited expenses related to the development of the Cybertruck.
Out of Tesla’s total deliveries in Q2, 446,915 were Model 3 sedans and Model Y SUVs. Combined deliveries of the Model S and X were 19,225, a 19% YoY increase for the two pricier models.
Production of the Model 3 and Y totaled 460,211 vehicles in Q2, a 90% YoY increase.
Tesla is still maintaining a delivery target of 1.8 million vehicles in 2023. However, during Wednesday’s webcast, Musk said that Q3 deliveries are expected to be slightly down due to factory shutdowns this summer to complete upgrades.
Tesla also continues to build out its Supercharger network, which is being adopted by other automakers, including Ford and General Motors. The company reported a 33% YoY increase in the number of Superchargers, adding an additional 48,082 connectors in Q2.
As of press time, shares of Tesla were down nearly 10% on Thursday to $262.40.
