{"id":38046,"date":"2023-07-20T04:33:13","date_gmt":"2023-07-20T08:33:13","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/tesla-reports-47-rise-in-sales-for-its-second-quarter-but-profitability-shrinks\/"},"modified":"2023-07-20T04:33:15","modified_gmt":"2023-07-20T08:33:15","slug":"tesla-reports-47-rise-in-sales-for-its-second-quarter-but-profitability-shrinks","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=38046","title":{"rendered":"Tesla reports 47% rise in sales for its second quarter, but profitability shrinks"},"content":{"rendered":"
\n

Tesla Inc. late Wednesday reported second-quarter earnings and sales that topped Wall Street\u2019s expectations and kept intact its 2023 goal of making about 1.8 million vehicles this year, but the stock headed lower as results didn\u2019t quite match expectations of a blowout quarter. <\/p>\n

Losses for the shares accelerated after Chief Executive Elon Musk warned investors to expect \u201cslightly\u201d lower production in the current quarter due to factories that need to undergo upgrades. At last check, Tesla shares were down 4.3% in after-hours trading. <\/p>\n

\n

Tesla
\n TSLA,
\n -0.71%<\/bg-quote>
\n earned $2.7 billion, or 78 cents a share, in the quarter, compared with $2.3 billion, or 65 cents a share, in the year-ago period. Adjusted for one-time items, the EV maker earned 91 cents a share. <\/p>\n

Revenue rose 47% to $24.9 billion.<\/p>\n

Analysts polled by FactSet expected Tesla to report adjusted earnings of 80 cents a share on sales of $24.2 billion. <\/p>\n

In a call with analysts after the results, Musk said demand for the Cybertruck, Tesla\u2019s electric pickup expected to be available later this year, \u201cis so off the hook you can\u2019t even see the hook.\u201d <\/p>\n

Musk used the word \u201cturbulent\u201d to describe the global economic background, but said that he has \u201chigh confidence in the long-term value of Tesla.\u201d <\/p>\n

Tesla\u2019s bottom-line beat was \u201cfairly sizeable,\u201d CFRA analyst Garrett Nelson said in an interview with MarketWatch. But \u201cthis was sort of an uneventful release with no change to prior 2023 volume guidance,\u201d he said. <\/p>\n

\u201cThe truth is that the bar had been set pretty high heading into this release given Tesla\u2019s meteoric run-up so far in 2023,\u201d Nelson said. Tesla shares have more than doubled thus far in the year. <\/p>\n

Tesla\u2019s gross margins, another perennial preoccupation for Tesla investors in the face of several price cuts this year, were worse than expected at 18.2%, compared with consensus around 18.8%, and 25% in the second quarter of 2022, he added. <\/p>\n

During the call with analysts, Tesla Chief Financial Officer Zach Kirkhorn called the margin drop \u201cmodest.\u201d <\/p>\n

The factory upgrades will carry \u201csome amount of factory idle cost,\u201d but Tesla is working to minimize these costs as much as possible, Kirkhorn said. <\/p>\n

Don\u2019t miss:<\/strong> Cathie Wood\u2019s ARK funds shed more Tesla and Coinbase shares, continue Twilio buying spree<\/p>\n

Tesla delivered a \u201cGoldilocks\u201d second quarter, Wedbush analyst Dan Ives said in a note late Wednesday. Margins were better than feared despite the \u201caggressive\u201d price cuts, he said. <\/p>\n

Operating margins and revenue dropped to 9.6%, from operating margins of 11% in the first quarter. <\/p>\n

Tesla called them \u201chealthy\u201d even with the price cuts the auto maker went for earlier in the year, and said the margins reflected \u201congoing cost reduction efforts\u201d; the production ramp in the Berlin, Germany, and Texas factories; and the \u201cstrong performance\u201d of its energy and services businesses. <\/p>\n

Tesla is focusing on \u201ccost reduction, new product development that will enable future growth, investments in R&D, better vehicle financing options, continuous product improvement and generation of free cash flow,\u201d executives said in a letter to shareholders accompanying results. <\/p>\n

\u201cThe challenges of these uncertain times are not over, but we believe we have the right ingredients for the long-term success of the business through a variety of high-potential projects,\u201d the letter said.<\/p>\n

Tesla earlier this month reported second-quarter deliveries, its proxy for sales, well above Wall Street expectations, sparking another rally for the stock. Tesla has gained 137% so far this year, compared with gains of around 19% for the S&P 500 index
\n SPX,
\n +0.24%<\/bg-quote>.<\/span>\n <\/p>\n

Related:<\/strong> Tesla, Rivian are the most shorted stocks in autos, but the trade is far from profitable<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Tesla Inc. late Wednesday reported second-quarter earnings and sales that topped Wall Street\u2019s expectations and kept intact its 2023 goal of making about 1.8 million vehicles this year, but the stock headed lower as results didn\u2019t quite match expectations of a blowout quarter. Losses for the shares accelerated after Chief Executive Elon Musk warned investors […]<\/p>\n","protected":false},"author":1,"featured_media":38047,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-38046","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nTesla reports 47% rise in sales for its second quarter, but profitability shrinks | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Tesla Inc. late Wednesday reported second-quarter earnings and sales that topped Wall Street\u2019s expectations and kept intact its 2023 goal of making about\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=38046\" \/>\n<meta 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