Tesla Half-Year Report 2023

Our operating margin remained healthy at approximately 10%, even with price reductions in Q1 and early Q2. This reflects our ongoing cost reduction efforts, the continued production ramp success in Berlin and Texas and the strong performance of our Energy and Services & Other businesses.

Total revenue grew 47% YoY in Q2 to $24.9B. YoY, revenue was impacted by the following items:
+ growth in vehicle deliveries
+ growth in other parts of the business
– reduced ASP YoY (excluding FX impact)
– negative FX impact of $0.6B1

Profitability Our operating income decreased slightly YoY to $2.4B in Q2, resulting in a 9.6% operating margin. YoY, operating income was primarily impacted by the following items:
– reduced ASP due to mix and pricing
– cost of production ramp of 4680 cells and other related charges
– increase in Operating expenses driven by Cybertruck, AI and other large projects
– negative FX impact
+ growth in vehicle deliveries (despite margin headwind from underutilization of new factories)
+ lower cost per vehicle, which includes lower raw material costs and IRA credit
+ gross profit growth in Energy business as well as Services & Other

Cash Quarter-end cash, cash equivalents and investments increased sequentially by $0.7B to $23.1B in Q2, driven mainly by free cash flow of $1.0B, partially offset by other financing activities, including debt repayments.