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Tesla has now announced its earnings for the second quarter of 2023, broadly beating consensus estimates for the top-line and bottom-line metrics.

$TSLA IR-compiled 2Q consensus is Adj EPS of $.80 ($.81 median). Mgmt has again not disclosed auto gross margin ex-RC which seems silly since Bloomberg and Factset both show it at 18.2% and it remains the key metric investors want to know. pic.twitter.com/7XgE9McKa5

— Gary Black (@garyblack00) July 19, 2023

The above tweet details consensus estimates compiled by the Tesla IR.

Tesla (NASDAQ: TSLA) Q2 2023 Earnings

Tesla has reported $24.927 billion in revenue for the first quarter of 2023, exceeding consensus expectations of $24.650 billion.

Revenue Comparison

Revenue

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5

10

15

20

25

30

0

5

10

15

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30

Q2 2022 16

Q1 2023 23

Q2 2023 Consensus (IR-compiled) 24

Q2 2023 Actual 24

(All figures are in billions of dollars)

The following snippet summarizes the EV giant’s production activities during the quarter:

Tesla produced 479,700 units during the second quarter of 2023. Moreover, in what constitutes another record, the company managed to deliver 466,140 units during the pertinent period, comfortably beating consensus expectations of 445,000 units (Factset).

On a more granular level, Tesla delivered 19,225 units of Model S/X EVs during the second quarter of 2023, beating expectations of 14,606 units. Critically, the EV giant delivered 446,915 units of Model 3/Y EVs during the pertinent quarter, significantly exceeding consensus estimates of 437,386 units.

Mgmt can’t dictate what #s investors should pay attention to; withholding it just causes investors to get it elsewhere. 2Q consensus auto GM ex-RC is 18.2%E vs 19.0% in 1Q and vs 26.2% YoY.

— Gary Black (@garyblack00) July 19, 2023

In its own contacts with analysts, Tesla again chose to withhold information about its auto gross margin (ex-regulatory credits). As per the tabulation by Bloomberg and Factset, Tesla’s auto gross margin (ex-RC) was expected to compute at 18.2 percent. For reference, this metric computed at 19.0 percent in Q1 2023 and 26.20 percent in Q2 2022. Against this backdrop, the company has now revealed that its auto gross margin computed at 18.10 percent during Q2 2023.

Tesla has also reported free cash flow of $1.0 billion during the pertinent period.

Finally, Tesla has reported $0.91 in non-GAAP (adjusted) EPS, exceeding consensus IR-compiled expectations of $0.80.

EPS Comparison

EPS

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Q2 2022 2

Q1 2023 0

Q2 2023 Consensus 0

Q2 2023 Actual 0

(All figures are in billions of dollars)

The following snippet summarizes Tesla’s latest guidance:

Earnings Context:

Tesla has finally started to produce its much-anticipated Cybertruck. Mass production of the electric truck, however, is only expected in 2024. It is hardly a surprise, therefore, that the company is aggressively increasing its production capacity, with Giga Berlin now expected to have the capability to produce 1 million electric cars per year after the completion of just-announced upgrades.

While the company’s deliveries continue to increase, its inventory levels are also increasing. In Q2 2023, Tesla’s inventory increased for the fifth consecutive quarter, with around 90,000 units in the company’s active inventory.