It’s nearly Tesla earnings day with the company set to announce its Q2 2023 financial results after markets close tomorrow, Wednesday, July 19. With Tesla announcing the first Cybertruck has rolled off the production line at Giga Texas last weekend, it is expected that CEO Elon Musk will provide an update on the highly anticipated electric truck. Many are hoping that Musk will finally announce the pricing and specs, but based on previous comments those won’t come out until the delivery event, which as of the last update will hopefully take place towards the end of Q3, or sometime in September.
While that will be the focus of many Tesla fans and investors, there is still of course the financial results that will be announced. Here is what analysts are expecting Tesla will publish in tomorrow’s Q2 2023 shareholder deck.
Earnings
Wall Street consensus is that Tesla will report earnings of $0.82 per share, according to Refinitiv data. Tesla posted earnings of $0.76 per share in Q2 2022, and $0.85 in Q1 2023.
Revenue
Tesla is expected to announce $24.9 billion in revenue for Q2 2023. That would be nearly 50% higher than last year when Tesla pulled in $16.9 billion in Q2 2022. It would also be a slight increase from their Q1 2023 revenue of $23.3 billion.
Margins
According to a poll conducted by Visible Alpha, Tesla’s gross profit margin is expected to decline to 18.9%. This figure represents a decrease compared to the Q1 2023 margin of 20.2% and a drop from the 25.9% margin recorded in Q2 2022.
Investor and Institutional Questions
Here are the top voted questions from Say that should be asked during the earnings call tomorrow, which is scheduled to start at 3:30pm CT (4:30 ET/1:30 PT).
- Has any automaker approached Tesla to license FSD?
- What is the status of the 4680 Cell? How far are you from the specs you laid out on battery day? When do you expect to achieve what you laid out on Battery Day?
- Could you quantify the benefits to COGS / unit from (a) IRA battery manufacturing incentives and (b) battery raw material declines year-to-date?
- Can you talk more to the upcoming Tesla Energy products, and how your thinking has evolved on the revenue model? Given Tesla’s AI capabilities, how do you see the long-term mix between hardware margin and recurring software margin from e.g. Autobidder as this segment accelerates?
- Critics of giga-casting contend that the process makes vehicles harder and more costly to repair, essentially pushing cost onto the consumer. Could you share some details about the initial repair experience with giga-casted vehicles?
- When will you get more information about our Cybertruck orders? Estimated delivery schedules, pricing and specifications?
- How has did intake trend relative to production levels during 2Q23, and how has it trended in the quarter-to-date period? Conceptually, how does Tesla decide when it is appropriate to reduce prices or add other sales incentives to increase demand?
- Have you considered allowing FSD transferability as a lever to allow existing customers to upgrade to a new Tesla instead of being locked in to existing cars due to price of FSD?
