Key Facts on Tesla’s Performance
Tesla (NASDAQ: TSLA) is facing challenges in 2023, with shares down 28% year-to-date following its second-quarter earnings report on July 22. Despite not reporting a significant loss, rapid capital expenditures are impacting profit margins. Tesla has 1.48 million active Full Self-Driving (FSD) subscriptions, a 56% increase from the previous year, generating approximately $1.8 billion annually at a rate of $99 per month.
While FSD currently contributes a small portion of Tesla’s $94.8 billion in annual revenue, it has significantly higher margins than the core electric vehicle business. CEO Elon Musk noted strong consumer demand for FSD in approved locations, which could boost EV sales as more regions approve the software. Tesla’s FSD fleet has amassed over 12 billion cumulative miles, enhancing data collection to improve software capabilities, which may benefit its upcoming robotaxi service.
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