Tesla – Solid Q2 with Higher Production and Lower Prices but…

During Q2 2023 Tesla (NASDAQ: TSLA) made  ~480,000 vehicles and delivered more than 466,000, the highest to date. As a result, Q2-2023 looked solid with Tesla setting its production and deliveries among its top five quarters. The result was revenue approaching $25B in a single quarter. Net revenue was $2.7 billion. However, analysts remain skeptical about what many of them say is a greatly overvalued stock that pays no dividends.  During the past year a share of TSLA stock has ranged from ~$102 to $315. It’s currently trading ~$260. (AutoInformed: Ford Cuts F-150 Lightning Prices by $6000 to $10,000)

“Our operating margin remained healthy at approximately 10% [9.6%], even with price reductions in Q1 and early Q2. This reflects our ongoing cost reduction efforts, the continued production ramp success in Berlin and Texas and the strong performance of our Energy and Services & Other businesses,” Tesla said.

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Tesla also reiterated its desire to be “at the forefront of AI development,”  as it started production of so-called Dojo training computers. “We are hopeful that our immense neural net training needs will be satisfied using our in-house designed Dojo hardware. The better the neural net training capacity, the greater the opportunity for our Autopilot team to iterate on new solutions,” Tesla said.

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“We are focusing on cost reduction, new product development that will enable future growth, investments in R&D, better vehicle financing options, continuous product improvement and generation of free cash flow. The challenges of these uncertain times are not over, but we believe we have the right ingredients for the long-term success of the business through a variety of high potential projects,” Tesla said.