Reversing and picking up people - looking for a chance to get on the bus 🚌
Tesla's earnings report for the second quarter of 2023 showed exciting growth. The company carried out a second round of price cuts in North America, benefiting from the White House's IRA subsidy policy and Tesla charging stations becoming a uniform standard in the US. These factors all contributed to a significant increase in sales volume and revenue.
In the second quarter of 2023, Tesla's revenue reached US$24.927 billion, up 47% year over year, and surpassed Bloomberg's forecast of US$24.3 billion. This performance is almost double the 24% year-on-year growth rate in the first quarter, showing the company's strong momentum.
Although revenue growth exceeded market expectations, Tesla's operating profit fell 3% to only 2.4 billion US dollars, below market expectations of 2.7 billion US dollars. The operating profit margin was 9.6%, down from the historical level of more than 10%.
The financial report also showed that Tesla's gross margin was 18.2%, lower than market expectations of 18.8%. The bicycle gross margin fell to 17.5%, and the market forecast was 18%. Although revenue from the energy storage and photovoltaic business rose 74% year over year, it fell slightly short of market expectations.
The service business was a highlight. Revenue increased 47% year over year to $2.15 billion, and gross margin also increased to 8%. Tesla charging stations have become the industry standard and are expected to bring stable cash flow to the company.
Tesla has generated more than 290 billion US dollars in revenue, of which more than 48 billion US dollars was generated in the first half of this year. It is expected that this year will be the first year for Tesla to reach 100 billion US dollars in revenue.
In the second quarter of 2023, Tesla's revenue reached US$24.927 billion, up 47% year over year, and surpassed Bloomberg's forecast of US$24.3 billion. This performance is almost double the 24% year-on-year growth rate in the first quarter, showing the company's strong momentum.
Although revenue growth exceeded market expectations, Tesla's operating profit fell 3% to only 2.4 billion US dollars, below market expectations of 2.7 billion US dollars. The operating profit margin was 9.6%, down from the historical level of more than 10%.
The financial report also showed that Tesla's gross margin was 18.2%, lower than market expectations of 18.8%. The bicycle gross margin fell to 17.5%, and the market forecast was 18%. Although revenue from the energy storage and photovoltaic business rose 74% year over year, it fell slightly short of market expectations.
The service business was a highlight. Revenue increased 47% year over year to $2.15 billion, and gross margin also increased to 8%. Tesla charging stations have become the industry standard and are expected to bring stable cash flow to the company.
Tesla has generated more than 290 billion US dollars in revenue, of which more than 48 billion US dollars was generated in the first half of this year. It is expected that this year will be the first year for Tesla to reach 100 billion US dollars in revenue.
Musk pointed out during the earnings call that Tesla has set record delivery data, and the Model Y has become the best-selling model in the world, surpassing all cheap models. He also said Tesla is willing to open FSD's autonomous driving rights to other companies and plans to sell software and technology to other car companies. This is a forward-looking move.
Despite the challenges of high interest rates and uncertainty in the macroeconomic environment, Tesla has maintained strong competitiveness in the current market. Musk reminded retail investors to pay attention to the high volatility of the market and recommended that they be careful when using leverage.
Although gross margin has declined in financial reports, there is no need to be overly pessimistic; the price reduction strategy adopted by Tesla is expected to gain more market share. At the same time, the company's innovative technology and progress in launching new models have laid a good foundation for future growth. Tesla continues to maintain its leading position in the electric vehicle market and will continue to lead the development of the industry.
Tesla's performance was very good; it actually dropped so much. So, does this count as picking someone up in a reverse car? However, as it seems, there is still a lot of room for decline. Don't rush into the market; wait and see.
Despite the challenges of high interest rates and uncertainty in the macroeconomic environment, Tesla has maintained strong competitiveness in the current market. Musk reminded retail investors to pay attention to the high volatility of the market and recommended that they be careful when using leverage.
Although gross margin has declined in financial reports, there is no need to be overly pessimistic; the price reduction strategy adopted by Tesla is expected to gain more market share. At the same time, the company's innovative technology and progress in launching new models have laid a good foundation for future growth. Tesla continues to maintain its leading position in the electric vehicle market and will continue to lead the development of the industry.
Tesla's performance was very good; it actually dropped so much. So, does this count as picking someone up in a reverse car? However, as it seems, there is still a lot of room for decline. Don't rush into the market; wait and see.
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