Tesla, Inc. stock research
FY2023 Q4
Tesla (TSLA) Gross Margin — Quarter Ended Dec 31, 2023
Revenue increased from the prior quarter, but gross profit rose at a slower rate, causing gross margin to weaken slightly. Compared to the same quarter last year, revenue was higher while gross profit was lower, resulting in a notably weaker gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue increased from the prior quarter, but gross profit rose at a slower rate, causing gross margin to weaken slightly. Compared to the same quarter last year, revenue was higher while gross profit was lower, resulting in a notably weaker gross margin.
- The strongest observable margin driver is the rise in cost of revenue, which grew faster than revenue in both sequential and year-over-year comparisons, thereby compressing gross margin.
- Sequentially, gross margin weakened slightly as revenue growth was outpaced by cost of revenue growth. Year over year, gross margin weakened more significantly due to a larger increase in cost of revenue relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
17.6%
Gross profit
$4.4B
Revenue
$25.2B
Cost of revenue
$20.7B
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% |
| Dec 31, 2023 | $25.2B | $4.4B | $20.7B | 17.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 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 strongest observable margin driver is the rise in cost of revenue, which grew faster than revenue in both sequential and year-over-year comparisons, thereby compressing gross margin.
Sequentially, gross margin weakened slightly as revenue growth was outpaced by cost of revenue growth. Year over year, gross margin weakened more significantly due to a larger increase in cost of revenue relative to revenue.
Monitor the trend of cost of revenue relative to revenue, as its growth rate continues to pressure gross margin.