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. That represents an increase of 47 percent year-over-year 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 consecutive quarter, indicating that Tesla’s rampant price cutting continues to hurt its results. Gross margins fell 5.6% quarter-over-quarter and 27% year-over-year.
Investors are depressed by Tesla’s profit margins, even as they applaud its recent 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 Tesla reported in the same quarter last year.
Investors are sad about Tesla’s profit margins
Tesla’s biggest victory this quarter has been the adoption by legacy automakers of its North American charging standard for electric vehicle charging. Ford was the first to announce plans to adopt Tesla’s more streamlined 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 of Tesla’s second-quarter earnings call with investors, which is scheduled for July 19 at 5:30 p.m. ET.