Tesla, Inc. stock research
FY2023 Q3
Tesla (TSLA) Gross Margin — Quarter Ended Sep 30, 2023
Revenue decreased from the prior quarter but increased from the same quarter a year ago. Gross profit declined both sequentially and year over year, resulting in a gross margin that was lower than both comparison periods.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue decreased from the prior quarter but increased from the same quarter a year ago. Gross profit declined both sequentially and year over year, resulting in a gross margin that was lower than both comparison periods.
- The most observable driver of the margin change is the relationship between cost of revenue and revenue. Compared to the prior year, cost of revenue grew at a faster pace than revenue, compressing the margin.
- Sequentially, revenue, gross profit, and cost of revenue all decreased, with gross margin weakening slightly. Compared to the same quarter last year, revenue was higher but gross profit was lower, and cost of revenue was markedly higher, leading to a significantly weakened gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
17.9%
Gross profit
$4.2B
Revenue
$23.4B
Cost of revenue
$19.2B
Quarter-over-quarter change
-0.3 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% |
| Sep 30, 2023 | $23.4B | $4.2B | $19.2B | 17.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.3 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 most observable driver of the margin change is the relationship between cost of revenue and revenue. Compared to the prior year, cost of revenue grew at a faster pace than revenue, compressing the margin.
Sequentially, revenue, gross profit, and cost of revenue all decreased, with gross margin weakening slightly. Compared to the same quarter last year, revenue was higher but gross profit was lower, and cost of revenue was markedly higher, leading to a significantly weakened gross margin.
Monitor the trajectory of gross margin relative to the growth rates of revenue and cost of revenue.