Tesla released its second-quarter earnings report, in which the company said it earned $3.1 billion in net income on $24.9 billion in revenue. This represents a 47 percent year-over-year increase compared to $16.9 billion in revenue in the second quarter of 2022.
The company’s gross margins fell to 18.2 percent for the second quarter in a row, signaling that Tesla’s rampant price cuts are continuing to hurt its bottom line. Gross margins fell 5.6 percent in the fourth quarter and 27 percent year over year.
Investors are upset about Tesla’s profit margins, even as they cheer the latest delivery report that revealed the company delivered 466,140 vehicles to customers over the past three months. That’s an 83 percent increase over the number reported by Tesla in the same quarter last year.
Investors are upset about Tesla’s profit margins
Tesla’s biggest win this quarter has been the legacy automaker’s embrace of the North American Charging Standard for EV charging. Ford was the first to announce plans to adopt Tesla’s more efficient EV connector, followed by GM, Rivian, Polestar, Volvo, Mercedes-Benz and Nissan. NACS is now on its way to becoming the de facto EV charging standard for North America.
We’ll update this story with details from Tesla’s second-quarter earnings call with investors, which is scheduled for July 19 at 5:30 p.m. ET.