NASDAQ$TSLA

Tesla Motors, Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Tesla's profitability decreased due to pricing and increased operating expenses, but revenue increased driven by vehicle deliveries. Cash increased driven by financing activities and free cash flow.

Tesla's Q3 2023 results showed revenue growth of 9% year-over-year, reaching $23.35 billion. However, profitability metrics declined, with operating margin at 7.6%. The company focused on cost reduction, free cash flow generation, and investments in AI and growth projects. Cash and investments increased to $26.1 billion.

  • Operating margin was 7.6% in Q3.
  • GAAP operating income reached $1.8B in Q3.
  • Free cash flow was $0.8B in Q3.
  • Cash and investments increased by $3.0B QoQ to $26.1B.

Headline financials

Total Revenue

$23.4B

Previous: $21.5B+8.8%
EPS (adj)

$0.66

Previous: $1.05-37.1%
Gross Margin

17.9%

No prior period
Operating Margin

7.6%

Previous: 0.0%
Operating Cash Flow

$3.31B

Previous: $0.00
Capital Expenditures

$2.46B

Previous: $0.00
Free Cash Flow

-$4.74B

Previous: -$2.01B-136.0%
Net Income

$1.85B

Previous: $3.29B-43.7%
Operating Income

$1.76B

Previous: $3.69B-52.2%
Gross Profit

$4.18B

Previous: $5.38B-22.4%
Cash & Equivalents

$15.9B

Previous: $19.5B-18.4%
Total Assets

$93.9B

Previous: $74.4B+26.2%
Stock-Based Comp

$465M

Previous: $362M+28.5%

Revenue & EPS history

Tesla · Revenue · Quarterly

$23.4B

Q3 2023+8.8%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Tesla · $23.4B total across 5 segments · Q3 2023

  • Automotive Sales
    $18.6B
  • Services & Other
    $2.17B
  • Energy & Storage
    $1.56B
  • Regulatory Credits
    $554M
  • Automotive Leasing
    $489M

Forward guidance

Tesla plans to grow production as quickly as possible, aligning with a 50% CAGR target. They anticipate remaining ahead of this target in 2023, aiming for around 1.8 million vehicles. The company has ample liquidity to fund its product roadmap and long-term expansion, expecting hardware-related profits to be accompanied by AI and software profits. Cybertruck deliveries are on track for later this year, and progress continues on the next-generation platform.

Tailwinds

  • Plans to grow production as quickly as possible.
  • Expecting to remain ahead of 50% CAGR target in 2023 with around 1.8 million vehicles.
  • Ample liquidity to fund product roadmap and expansion plans.
  • Expect hardware profits to be accompanied by AI and software profits.
  • Cybertruck deliveries remain on track for later this year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.1%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+2.5%

Avg return

30 days after

56%

36 / 64 earnings

Positive

+25.1%

Q1 2013

Best reaction

-14.1%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-5.9%-3.0%+10.0%
Q1 2026+0.5%-3.0%+10.0%
Q3 2025+3.6%+4.9%-10.9%
Q2 2025-8.2%-3.4%+2.2%
Q1 2025+5.4%+20.1%+42.6%
Q4 2024+2.9%+0.8%-24.7%
Q3 2024+19.5%+20.4%+61.7%
Q2 2024-14.1%-12.6%-16.2%
Q1 2024+14.1%+18.5%+22.3%
Q4 2023-12.7%-8.7%-8.2%
Q3 2023-13.6%-16.8%-8.1%
Q2 2023-10.4%-8.3%-26.5%
Q1 2023-11.6%-11.8%-2.3%
Q4 2022+11.4%+15.8%+36.8%
Q3 2022-5.9%-4.1%-18.2%
Q2 2022+10.7%+9.3%+20.8%
Q1 2022-1.9%-2.9%-35.4%
Q4 2021-9.7%+2.0%-11.8%
Q3 2021+3.4%+18.6%+31.6%
Q2 2021+0.2%+6.8%+10.5%
Q1 2021-3.4%-2.7%-15.1%
Q4 2020-5.4%-4.9%-23.5%
Q3 2020+0.9%-0.4%+16.0%
Q2 2020-3.5%-1.8%+30.7%
Q1 2020+1.7%-1.0%+8.6%
Q4 2019+13.0%+37.6%+17.8%
Q3 2019+17.3%+28.2%+30.3%
Q2 2019-12.1%-9.4%-18.7%
Q1 2019-6.1%-8.5%-27.8%
Q4 2018+3.2%+5.2%-0.9%
Q3 2018+7.0%+13.8%+10.8%
Q2 2018+17.2%+14.7%+1.2%
Q1 2018-5.2%+1.0%-2.7%
Q4 2017-5.6%-5.5%-2.0%
Q3 2017-9.7%-8.7%-7.5%
Q2 2017+8.6%+11.1%+11.2%
Q1 2017-7.3%-3.7%+6.6%
Q4 2016-7.7%-11.2%-5.1%
Q3 2016+0.8%-2.3%-2.8%
Q2 2016+1.5%-0.5%-12.9%
Q1 2016-9.0%
Q4 2015+1.5%
Q3 2015+8.4%
Q2 2015-7.5%
Q1 2015+1.7%
Q4 2014-6.2%
Q3 2014+0.9%
Q2 2014+1.9%
Q1 2014-13.8%
Q4 2013+3.1%
Q3 2013-13.7%
Q2 2013+7.9%
Q1 2013+25.1%
Q4 2012+2.0%
Q3 2012+0.5%
Q2 2012+4.0%
Q1 2012-1.6%
Q4 2011-1.6%
Q3 2011+0.9%
Q2 2011+3.6%
Q1 2011-3.8%
Q4 2010+3.7%
Q3 2010+9.6%
Q2 2010+6.8%
Q1 2010

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