Tesla reported Wednesday net income of $2.7 billion in the second quarter, up 20% from the same period last year as once again, the company’s EV price cuts dug into profits. The automaker has repeatedly reduced the cost of its four EV models in the United States, Mexico, Europe and China. The move helped boost sales in the first half of the year, with Tesla hitting record Q2 deliveries of 466,140 units. But it’s also taken chunks out of Tesla’s normally healthy automotive margins.
For the second time this year, Tesla’s gross margins decreased to 18.2%, down from 25% in Q2 2022 and down from 19.3% last quarter.
Tesla matched Wall Street revenue estimates of around $25 billion for the quarter, which is nearly 50% higher than year-ago sales of $16.9 billion. Most of the revenue came from Tesla’s automotive revenue, which hit $21.3 billion in Q2. That number includes $282 million from federal tax incentives.
A small, but notable, chunk of Tesla’s Q2 revenue came from “services and other revenue,” which usually includes after-sales vehicle services and parts, retail merchandise, vehicle insurance and the Supercharger network.
Tesla’s number of Supercharger stations and connectors increased 33% in the second quarter to 5,265 and 48,082, respectively. The automaker has been opening its network of Superchargers to other automakers in recent months, notably Ford and General Motors, and most recently Nissan. While charging isn’t a main revenue driver for Tesla, it’s possible that some of the increase came from Tesla opening up its charging network.
Energy generation and storage revenue remained flat quarter-over-quarter, but grew 74% year-over-year.
