Tesla, Inc. stock research
FY2024 Q1
Tesla (TSLA) Gross Margin — Quarter Ended Mar 31, 2024
Gross profit is the difference between revenue and cost of revenue; gross margin expresses that profit as a share of revenue. For the quarter, revenue and cost of revenue both declined from prior periods, but gross margin decreased slightly.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Gross profit is the difference between revenue and cost of revenue; gross margin expresses that profit as a share of revenue. For the quarter, revenue and cost of revenue both declined from prior periods, but gross margin decreased slightly.
- The decline in gross margin was driven by a smaller decrease in cost of revenue relative to the decrease in revenue. Revenue fell while cost of revenue did not decline proportionally, compressing the margin.
- Gross margin weakened compared to both the prior quarter and the same quarter one year earlier. Revenue, gross profit, and cost of revenue were all lower in the current quarter relative to both comparison periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
17.4%
Gross profit
$3.7B
Revenue
$21.3B
Cost of revenue
$17.6B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-2.0 pts
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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $21.3B | $3.7B | $17.6B | 17.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-0.3 pts
Year-over-year change
Mar 31, 2023
-2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin was driven by a smaller decrease in cost of revenue relative to the decrease in revenue. Revenue fell while cost of revenue did not decline proportionally, compressing the margin.
Gross margin weakened compared to both the prior quarter and the same quarter one year earlier. Revenue, gross profit, and cost of revenue were all lower in the current quarter relative to both comparison periods.
Monitor the trajectory of cost of revenue relative to revenue, as the relationship between the two determines gross margin trends.