TS

Tesla, Inc. stock research

Jun 30, 2024

FY2024 Q2

Tesla (TSLA) Gross Margin — Quarter Ended Jun 30, 2024

Revenue increased compared to both the prior quarter and the same quarter a year ago, while gross profit improved from the prior quarter but remained largely level with the year-ago period. Gross margin strengthened versus the prior quarter but weakened slightly compared with the same quarter a year earlier.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue increased compared to both the prior quarter and the same quarter a year ago, while gross profit improved from the prior quarter but remained largely level with the year-ago period. Gross margin strengthened versus the prior quarter but weakened slightly compared with the same quarter a year earlier.

  • The improvement in gross margin from the preceding quarter was driven by a proportionally smaller increase in cost of revenue relative to revenue, leading to higher gross profit. This resulted in gross margin expanding compared to the prior period.
  • Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all improved. Versus the same quarter one year earlier, revenue was higher and gross profit was roughly stable, while gross margin was slightly lower.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

18.0%

Gross profit

$4.6B

Revenue

$25.5B

Cost of revenue

$20.9B

Quarter-over-quarter change

+0.6 pts

Year-over-year change

-0.2 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$23.4B$4.2B$19.2B17.9%
Dec 31, 2023$25.2B$4.4B$20.7B17.6%
Mar 31, 2024$21.3B$3.7B$17.6B17.4%
Jun 30, 2024$25.5B$4.6B$20.9B18.0%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

+0.6 pts

Year-over-year change

Jun 30, 2023

-0.2 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The improvement in gross margin from the preceding quarter was driven by a proportionally smaller increase in cost of revenue relative to revenue, leading to higher gross profit. This resulted in gross margin expanding compared to the prior period.

Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all improved. Versus the same quarter one year earlier, revenue was higher and gross profit was roughly stable, while gross margin was slightly lower.

Monitor whether cost of revenue continues to grow at a different rate than revenue, as this directly influences gross margin trend.