Investor's Corner
Tesla (TSLA) Q1 2023 earnings results: $23.3B in revenue, 19.3% non-GAAP gross margins
Tesla (NASDAQ:TSLA) posted its Q1 2023 earnings report after markets closed today. The results, which were discussed in the Q1 2023 Update Letter, were released after the closing bell on Wednesday, April 19, 2023.
Tesla’s earnings come on the heels of the company’s aggressive pricing strategy and record delivery numbers. In the first quarter, Tesla produced 440,808 vehicles and delivered 422,875. That’s a new record for the EV maker, which is quite impressive considering that Q1 is relatively short and it gets hit by holidays like the Chinese New Year.
The following is a quick overview of Tesla’s Q1 2023 results.
Earnings per Share
Tesla’s earnings per share for the first quarter of 2023 was listed at $0.85, which was right in line with analyst expectations of $0.85 as per estimates compiled by Refinitiv.
Revenue
Tesla posted revenues of $23.33 billion, which was a slight beat of the $23.21 billion that was expected by analysts compiled by Refinitiv. Automotive revenue, a core segment of Tesla’s business, was listed at $19.96 billion in Q1 2023.
Overall, revenue grew 24% YoY in Q1 to $23.3 billion year-over-year. This was impacted by a growth in vehicle deliveries, reduced ASP year-over-year, and negative FX impact of $0.88 billion.
Gross Margin
Tesla’s gross margin for the first quarter of 2023 was listed at 19.3%. In Q1 2022, Tesla’s gross margin was listed at 29.1%.
Profitability
Tesla’s operating income decreased YoY to $2.7 billion in Q1, resulting in a 11.4% operating margin. The company noted that operating income was affected by growth in vehicle deliveries, reduced ASP YoY, higher raw material, commodity, logistics and warranty costs, cost of production ramp of 4680 cells, and lower credit revenue, among others.
Net Income and GAAP Earnings
Net income, however, came at $2.51 billion, down about 24% from the past year. GAAP earnings were listed at $0.73, which is down about 23% from Q1 2022.
Cash
At the end of Q1 2023, Tesla’s cash, cash equivalents, and investments rose sequentially by $217 million, reaching a total of $22.4 billion. This was fueled in no small part by free cash flow of $441 million, though it was somewhat tempered by other financial activities such as debt repayments.
On Pricing and Affordability
A key focus of this quarter’s results would be Tesla’s pricing, which mostly got lower in Q1. In the recently released Update Letter, Tesla explained that while most of the automotive sector is still struggling with the economics of their respective EV programs, the company is looking to leverage its position as a cost leader. Tesla also highlighted that its pricing strategy considers a long-term view per vehicle.
“Our near-term pricing strategy considers a long-term view on per vehicle profitability given the potential lifetime value of a Tesla vehicle through autonomy, supercharging, connectivity, and service. We expect that our product pricing will continue to evolve, upwards or downwards, depending on a number of factors. Although we implemented price reductions on many vehicle models across regions in the first quarter, our operating margins reduced at a manageable rate. We expect ongoing cost reduction of our vehicles, including improved production efficiency at our newest factories and lower logistics costs, and remain focused on operating leverage as we scale.”
Vehicle Program Highlights
Tesla shared a number of updates on its vehicle programs in its Q1 2023 Update Letter. The company, for one, revealed that Cybertruck factory tooling is on track, and it is currently producing Alpha versions of the all-electric pickup truck.
Over the first quarter of 2023, the Tesla Model Y crossover also became the best-selling vehicle in Europe in Q1. The vehicle was also the best-selling vehicle in the United States during the quarter, at least outside pickup trucks.
Tesla’s Q1 2023 Update Letter can be found below.
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Investor's Corner
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
Tesla (NASDAQ: TSLA) beat Wall Street expectations of 406,000 vehicles delivered in Q2 by reporting 480,126 deliveries for the three months ending in June.
Tesla reported it delivered 467,762 Model 3 and Model Y units, while 12,364 Model S, Model X, and Cybertrucks switched hands during the quarter. The Model S and Model X were officially sunset this past quarter and will no longer be part of the company’s Production & Delivery reports moving forward.
🚨 BREAKING: Tesla delivered 480,126 vehicles in Q2, ANNIHILATING Wall Street expectations of 406,000. Production was reported at 451,758.
Deliveries:
Model 3/Y: 467,762
Other Models: 12,364Production:
Model 3/Y: 442,936
Other Models: 8,822 https://t.co/TTHwQAsKt8 pic.twitter.com/7qI4Zj6FE5— TESLARATI (@Teslarati) July 2, 2026
The quarter is a pleasant surprise and a good rebound from Q1, when Tesla slightly missed the Wall Street consensus of 365,645 cars by reporting 358,023 deliveries for the first three motnhs of the year.
Energy storage deployments also provided some strength in Tesla’s delivery report, hitting 13.5 GWh for Q2. This is a particular division of Tesla’s business that has been overwhelmingly robust over the past few years, truly being a strong point of the company’s overall model.
For the year, Tesla analysts still predict deliveries to trend in the 1.69 million unit region, a modest 3 to 5 percent increase from the 1.64 million cars the company delivered last year. Tesla will likely return to more sequential and noticeable year-over-year growth as the Cybercab project starts to ramp up considerably in the next few years.
Tesla has some other potential catalysts to spur vehicle deliveries, too. Not only is it expecting Cybercab to truly start making a change in the next few years, but other vehicles could be entering the company’s lineup.
Tesla sends production Cybercab with no steering wheel, pedals to on-road testing
The slightly longer Model Y L has been a highly speculated release candidate in the U.S. It has already done incredibly well in China, and U.S. buyers have been wanting slightly more interior space than the Model Y. Now that the Model X is gone, it is more needed than ever.
Q2 highlights a pretty stable automotive division within Tesla, and no true concerns arise from these figures, especially considering it managed to beat expectations convincingly.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla brings Model Y L ‘Launch Series’ to the U.S. at $61,990
Tesla just told us twice that Model Y L is coming to the U.S.
