U.S.-based electric vehicle (EV) maker Tesla reported a net income of $2.7 billion in the second quarter (Q2) of the financial year (FY) 2023, a 20% year-over-year (YoY) increase. The company attributed it to increased vehicle deliveries and other parts of the business, which include energy storage and solar project deployments.

The gross profit from the storage and solar segments stood at $278 million compared to ₹97 million YoY.

The company posted a 47% YoY growth in revenue at $24.9 billion for the April-June quarter. Nearly $21.27 billion came from the automobile segment, while storage and solar segments contributed ₹1.51 billion.

Tesla’s adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) rose by 23% YoY to $4.6 billion in the second quarter of 2023.

Electric Vehicles

The cumulative vehicle production increased by 86% YoY to 479,700 in Q1 2023, while it increased sequentially from 440,808 vehicles.

The vehicle deliveries for the April-June quarter increased by 83% YoY to 466,140.

During Q2, Tesla’s Model Y recorded sales of over 446,915 Model Ys and 3’s.

In Q2, Tesla achieved a record production of vehicles, primarily driven by the ongoing ramps of their new factories and the impressive performance of Shanghai and Fremont facilities. Gigafactory Texas made significant progress in the Model Y production, and preparations for Cybertruck manufacturing are on track, with initial deliveries expected this year.

Additionally, Tesla’s factory in Germany successfully produced standard-range Model Y vehicles for the first time during this quarter. Building on the momentum from Q1, the Model Y emerged as the top-selling vehicle in Europe year-to-date.

The rise in the sales volume was attributed to the competitive price cuts Tesla initiated during the previous quarter to stand out against its competitors.

Commenting on Tesla’s strategy to cut prices to drive volume growth, Elon Musk said, “If I may, look, the short-term variances in gross margin and profitability really are minor relative to the long-term picture. Autonomy will make all of these numbers look silly. So, I strongly believe Tesla is a big long-term investment.”

Energy Storage

Energy storage deployments increased by 222% YoY in Q2 to 3.7 GWh, attributed to the ongoing ramp of the company’s first dedicated Megapack factory Lathrop, with 40 GWh capacity already deployed and still more room available to reach full capacity.

Tesla accumulated $1.5 billion of the total revenue from the energy generation and storage business during Q2, up 174% YoY.

In May this year, the company started the construction of its 50 GWh in-house lithium refinery in the greater Corpus Christi region of Texas, representing an investment of over $1 billion.

Musk expects the refinery to produce enough battery-grade lithium for 1 million electric vehicles by 2025, making Tesla the largest lithium processor in North America.

Source: Tesla

Solar Deployment

Solar deployments remained roughly flat sequentially at 66 MW, declining YoY, predominantly due to a high-interest rate environment causing postponement of solar purchasing industry-wide.

Tesla reported a net income of $2.5 billion in the first quarter of the financial year 2023, a 24% YoY drop.