Tesla Q2 2023 Earnings Forecast: Cybertruck News and Price Drop Effects

Tesla will announce its second-quarter results Wednesday after the bell. Investors will be tuning in for more details on the much-delayed Cybertruck, as well as how Tesla's numerous price cuts have affected automotive gross margins.

Wall Street estimates predict that Tesla will generate about $24.9 billion in revenue for the quarter, nearly 50% more than sales of $16.9 billion a year ago.

Tesla stock has jumped 168.62% since the start of the year. It closed at $290.38 on Monday afternoon, benefiting from the news that the first Cybertruck was finally built over the weekend.

There's still a lot we don't know about the Cybertruck

Over the weekend, Tesla tweeted that it had finally rolled its first Cybertruck off the production line at Giga Austin, news that drew as much fanfare as it did skepticism.

The skepticism stems from the fact that Tesla hasn't shared any other details about the truck or its production schedule. The futuristic, angular, stainless-steel pickup truck was first announced in 2019, with production and deliveries slated to begin in 2021. Tesla has repeatedly pushed back production, citing component shortages.

In the aftermath of news that Tesla had built a grand total of a Cybertruck, some have accused the automaker of trying to build hype, boost its stock price and deflect attention other problems by sharing the news so close to the profits.

A few tidbits we'll hear on Wednesday: how Tesla will price the Cybertruck, what other specs the company may share about the vehicle, when the first deliveries will begin, and when the automaker will begin mass production.

We also want to know what Tesla's production capacity for the Cybertruck will be. At Tesla's annual shareholders meeting in May 2023, Musk said the automaker could deliver between 250,000 and 500,000 units a year once production begins. Let's see if Tesla reduces that number tomorrow.

How Price Cuts Affected Automotive Gross Margins

Analysts at Wells Fargo and Wedbush both predicted that Tesla's automotive gross margins would fall to 17.5% following the automaker's continued price cuts in the United States, Europe and China.

Price cuts, along with U.S. federal electric vehicle tax credits, appear to have boosted Tesla sales over the past two quarters. In the second quarter, Tesla achieved record global production and shipments of 479,999 units and 466,140 units, respectively. This represents an increase of 10% quarter over quarter and 83% year over year.

While these discounts may have increased sales, they may also have affected margins, as they did in the first quarter.

In the first quarter, gross margins fell below 20%, which weighed on the automaker's traditionally strong automotive revenues. Operating margins, an area where Tesla has been an industry leader, also fell from 19.2% in the first quarter of 2022 to 11.4% in the first quarter of 2023. The company's net income of 2. $51 billion in the first quarter was a 24% decline from the same period last year. .

Some of these losses can be attributed to vehicle discounts, and some to increased production. In the first quarter, Tesla spent $2 billion in capital expenditures, likely to boost capacity at its new and existing factories.

Analysts seem split on whether to worry about Tesla's stock price...