Tesla’s Q2 Financials Show Mixed Results
Tesla (NASDAQ: TSLA) reported record revenue for the second quarter of 2023, with vehicle deliveries driving total revenue to over $100 billion in the past year. However, the company also revealed a negative free cash flow of $1.1 billion, largely due to significant planned capital expenditures (capex) of $25 billion for the year, nearly triple the $8.5 billion it spent in 2022. In Q2 alone, capex grew to $5.8 billion, a 142% increase from $2.4 billion in Q2 2022.
Despite the strong revenue figures, Tesla’s stock price has faced pressure as investors grow concerned about the sustainability of its spending, which detracted from cash reserves, decreasing by $1.2 billion. Currently, Tesla trades at 171.1 times its projected earnings for the next 12 months, significantly higher than competitors like Apple at 38.8 times.
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