Some of us love Tesla, some of us hate Tesla, and some of us are somewhere in the middle. Wherever you place on this spectrum, one thing is clear: we have to keep up with what Tesla does, to understand the rest of the industry. That said, we’re back with a fresh batch of electrifying updates for S01E03 of Teslaverse. If you didn’t catch the first two posts, no worries, you can find them here(episode 1) and here(episode 2). As always, Beast wishes to take all the credit, but the real hero behind this project is Jaan from The EV Universe. He’s on a mission to connect the whole EV ecosystem into one and make it accessible to everyone.
A quick reminder before jumping into episode 3:
This blog post is a quick overview of Teslaverse #3. You may call it a trailer, or episode highlights. If you wish to have more comprehensive info we recommend switching your tab to Teslaverse #3: ⚡ Q2 (l)earnings — Supercharger with card payments — Cybertruck backstory
But if you chose to stay and get a quick overview, then here we go…
Deep Dive: Q2 Earnings
Financial Highlights
Q2 2023 was Tesla’s best quarter in terms of revenue, reaching $24.9 billion, a YoY increase of 47%. Automotive revenue accounted for $21.27 billion, contributing to a GAAP net income of $3.14 billion with a gross margin of 18.2%. However, the operating margin decreased to 9.6% from the previous quarter’s 11.4%.
Production and Demand
Tesla delivered 466,140 vehicles in Q2 (+83% increase year-over-year, +10% over Q1). This Includes 19,225 Model S/X (produced 19,489) and 446,915 Model 3/Y (produced 460,211). Total produced was 479,700 vehicles. Tesla aims to achieve 1.8 million deliveries this year, with a slight production output decrease expected in Q3 due to factory upgrades.
Global Expansion
Tesla is actively expanding its production capacity globally, with Giga Berlin Model Y capacity now updated to “375k” and the Next-Gen Platform being prepared for various regions, including Giga Mexico. Discussions with several countries for new EV and battery factories suggest continued growth potential.
Tesla Energy
Tesla Energy saw significant growth, with gross margin reaching 18.4%, up 67% from Q1. Storage deployments increased by 222% YoY, while solar deployments remained roughly flat, partly due to a high-interest rate environment.
Full Self-Driving (FSD) Technology
Tesla made strides in FSD development, with owners driving 320 million miles cumulatively on FSD Beta. The production of Dojo, the training computer, has started, aiming to enhance neural net training. Tesla is also in early discussions with a major automaker to license its FSD technology, signaling industry recognition.
Tesla Bots
Tesla is working on Tesla Bots, and around 5-6 are already in use in their factories, with plans for Optimus bots to be deployed next year.
While the earnings call covered several important aspects, there were some topics left unaddressed, such as non-Tesla charging and Tesla’s advertising efforts. Additionally, there were no updates on the progress of the Tesla Semi under production numbers.
Tesla’s Q2 2023 performance showcased significant growth in various areas, indicating the company’s ongoing efforts to expand its operations, improve its technologies, and deliver sustainable long-term value to its shareholders and customers. Further developments in non-Tesla charging, advertising efforts, and the Tesla Semi progress will likely be of interest in the future. As always, it is essential to conduct further research and analysis to make informed decisions regarding investments or interests in Tesla and its endeavors.
The Company
Referral Program Updates
Tesla is continually refining its Referral Program to enhance customer engagement. The company recently expanded the program’s reach, allowing users to refer up to 12 people per year and share their referral links on social media platforms. The updated policy offers enticing rewards, such as 100,000 free Supercharger miles, for those who successfully reach the maximum “points” limit.
Additionally, Tesla’s brand loyalty stands out in the luxury segment, as revealed in S&P Global Mobility’s study. While other brands are losing more households than they retain, a remarkable 68% of Tesla owners choose to purchase another Tesla when returning to the market.
Cybertruck
The upcoming Cybertruck continues to captivate public interest and spark discussions. Tesla enthusiasts and followers eagerly await its release as the company shares glimpses of the vehicle’s development. Recent images and videos reveal the Cybertruck’s innovative design, boasting a >6ft bed and ample seating for five adults. While some features have been revised, like the replacement of a foldable seat/console with a fixed console, the Cybertruck remains a testament to Elon Musk’s determination to revolutionize the automotive industry. Walter Isaacson’s upcoming biography on Musk provides an exciting behind-the-scenes look at the creative process that led to the Cybertruck’s inception.
Advancements in Technology
Tesla continues to push the boundaries of technology in its vehicles. Collaborating with Samsung, Tesla’s next-gen FSD chips promise higher performance and efficiency for their “hardware 5” computers. Additionally, Tesla’s Model S&X HEPA filters provide exceptional filter media area compared to standard automotive filters, enhancing cabin air quality for occupants. The company also introduces AirPlay functionality, enabling high-quality audio and video streaming, elevating the overall in-car entertainment experience for Tesla owners.
Charging Infrastructure and Market Performance
Tesla’s efforts to expand its charging infrastructure are evident in the design of Supercharger V4, which features a contactless card payment area and screens for improved user convenience. In addition, Tesla installs a “CyberCanopy” over Superchargers in Canton, Massachusetts, demonstrating the company’s dedication to providing reliable and efficient charging amenities for its customers. Despite its strong Q2 performance, Tesla’s stock faced a 9.74% decline the following day, showcasing the impact of market fluctuations and investor sentiment on the company’s valuation.
Global Expansion Efforts
Tesla’s global expansion efforts are gaining momentum, with the Model Y making significant strides in Europe. The vehicle has emerged as the best-selling model of any kind in the region during the first half of the year, solidifying Tesla’s position in the European market. Furthermore, Tesla hosted a Q&A session about its plans to expand Giga Berlin, aiming for an impressive capacity of 1 million vehicles per year and 50 GWh of battery cell production. These ambitious targets would make Giga Berlin the largest car production plant in Germany. Meanwhile, Tesla’s interest in establishing battery plants in India reflects a growing commitment to the Indian market and its potential for electric vehicle adoption.
We hope you enjoyed this first Teslaverse!
Episode 4 will be out in a month, so we do recommend keeping an eye on our blog section or subscribing to The EV Universe newsletter.
Huge thanks to Jaan for producing our Teslaverse #3.
