Many observers worried how Tesla’s multiple price cuts during the second quarter would impact the company’s bottom line. The numbers are in and show the concerns were unfounded as the company exceeded analysts’ expectations, although margins did drop.
The company’s second quarter revenue was up 47% year-over-year to $24.9 billion. Tesla’s operating income decreased slightly to $2.4 billion in Q2, resulting in a 9.6% operating margin. It’s adjusted EBITA came in at $4.7 billion, up 23 compared to the year-ago period.
“(The second quarter) was a record quarter on many levels with our best-ever production and deliveries and revenue approaching $25B in a single quarter,” the company said in presentation to shareholders. “We are excited that we were able to achieve such results given the macroeconomic environment we are currently in.
“Our operating margin remained healthy at approximately 10%, even with price reductions in Q1 and early Q2. This reflects our ongoing cost reduction efforts, the continued production ramp success in Berlin and Texas and the strong performance of our Energy and Services & Other businesses.”