Tesla, Inc. stock research
FY2023 Q2
Tesla (TSLA) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased while cost of revenue grew at a faster pace, causing gross profit to remain roughly stable and gross margin to weaken. Compared to the prior quarter, gross margin declined, and relative to the same quarter one year earlier, it was noticeably lower.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased while cost of revenue grew at a faster pace, causing gross profit to remain roughly stable and gross margin to weaken. Compared to the prior quarter, gross margin declined, and relative to the same quarter one year earlier, it was noticeably lower.
- The strongest observable driver is the relationship between revenue and cost of revenue: revenue grew but cost of revenue rose by a greater amount, which compressed gross margin.
- Compared with the immediately preceding quarter, gross margin was lower; revenue was higher, cost of revenue was higher, and gross profit was flat. Versus the same quarter one year earlier, gross margin was lower; revenue was higher, cost of revenue was higher, and gross profit was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.2%
Gross profit
$4.5B
Revenue
$24.9B
Cost of revenue
$20.4B
Quarter-over-quarter change
-1.2 pts
Year-over-year change
n/a
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $23.3B | $4.5B | $18.8B | 19.3% |
| Jun 30, 2023 | $24.9B | $4.5B | $20.4B | 18.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-1.2 pts
Year-over-year change
Year-ago quarter unavailable
n/a
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between revenue and cost of revenue: revenue grew but cost of revenue rose by a greater amount, which compressed gross margin.
Compared with the immediately preceding quarter, gross margin was lower; revenue was higher, cost of revenue was higher, and gross profit was flat. Versus the same quarter one year earlier, gross margin was lower; revenue was higher, cost of revenue was higher, and gross profit was higher.
Monitor the growth rate of cost of revenue relative to revenue, as its faster increase drove margin compression.