Tesla’s Q2 Struggles
Tesla (NASDAQ: TSLA) reported a 12% drop in overall revenue to $22.5 billion in Q2 2023, with auto revenue falling 16% to $16.7 billion amid declining delivery numbers. Deliveries dropped by 13% for the second consecutive quarter, with Model 3 and Model Y deliveries decreasing by 12%, and other models plunging by 52%. Adjusted earnings per share went down by 23% to $0.40. Operating cash flow decreased by 30% to $2.5 billion, while free cash flow plummeted 89% to $146 million.
Future Challenges and Ambitions
With the expiration of the federal $7,500 electric vehicle tax credit looming at the end of September 2025, Tesla’s management has acknowledged potential challenges ahead. CEO Elon Musk aims to expand the company’s autonomous ride-hailing service to half of the U.S. population by year-end, despite current limitations in testing. Musk also plans to introduce a prototype of the Optimus robot by the end of 2023, with a goal of producing 1 million Optimus robots annually within five years. As Tesla’s market cap relies heavily on future ambitions, skepticism remains about the viability of these goals.
