Key Points
Tesla reported a record $28.23 billion in revenue for Q2 2023, surpassing $100 billion in trailing-12-month sales for the first time. The company delivered 480,126 electric vehicles, marking a 25% year-over-year increase. However, despite strong sales, Tesla’s stock fell 18% following the earnings report on July 22, due to shrinking operating margins, negative cash flow, and rising capital expenditures.
Operating margins dropped from 4.1% to 1.4%, while operating expenses rose by 47% to $4.35 billion. The company recorded negative free cash flow of $1.1 billion in the quarter and plans to borrow up to $30 billion this year amid expectations for $25 billion in capital expenditures. CEO Elon Musk’s net worth has also seen a dramatic decline, currently at $709 billion, following a loss exceeding $300 billion since the beginning of the year.
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