New Delhi:- Tesla said Wednesday that net profit rose 20% to $2.7 billion in the second quarter from a year earlier, as price cuts for its electric vehicles again weighed on profits. The company has repeatedly cut costs on four EV models in the U.S., Mexico, Europe and China. The move led to higher sales in the first half, with Tesla delivering a record 466,140 vehicles in the second quarter. But it also eats into some of Tesla's normally healthy car profits.

Tesla's gross margin fell for the second time this year to 18.2%, down from 25% in the second quarter of 2022 and down from 19.3% in the previous quarter. Tesla's sales for the quarter were about $25 billion, in line with Wall Street estimates, up nearly 50% from last year's $16.9 billion. Most of the revenue came from Tesla's car sales, which reached $21.3 billion in the second quarter. This figure includes his $282 million in federal tax benefits. 

A small but notable portion of Tesla's second-quarter sales came from "services and other revenue," which typically includes vehicle service and parts, retail products, vehicle insurance, and the Supercharger network.

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Tesla's number of Supercharger stations and outlets increased 33% in the second quarter to 5,265 and 48,082, respectively. In recent months, the company has opened up its Supercharger network to other automakers, most notably Ford and General Motors and most recently Nissan. Charging is not a significant revenue driver for Tesla, but some of the increase could be due to Tesla opening up its charging network.

Energy generation and storage revenues were flat quarter-over-quarter and increased 74% year-over-year. Tesla's operating margin fell slightly to 9.6% in the second quarter from 11.4% in the first quarter. Capital spending was flat quarter-on-quarter, but he was up 19% year-over-year. The company said it has invested $2 billion, possibly in continued production ramps at its giant factories in Berlin and Texas. Tesla's second-quarter earnings show Berlin's vehicle capacity increased by 25,000 vehicles compared to the first-quarter reported figures.

Tesla had $1 billion in free cash flow at the end of the first quarter, up from $441 million at the end of the first quarter. Tesla shares fell 5% in after-hours trading Wednesday to close at $291.26. Tesla's full-year outlook remains unchanged. "For 2023, we expect to continue above the long-term 50GR of about 1.8 million units per year," Tesla's earnings report said.

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In the first quarter, Tesla delivered 422,875 vehicles worldwide. In the second quarter, that number increased by 10% to reach 466,140 units. If Tesla's production and delivery capacity continues to grow at about the same pace, Tesla could sell nearly 2 billion vehicles by the end of the year. But Musk said on Wednesday that planned downtime associated with factory upgrades will see production drop slightly in the third quarter. He noted that macroeconomic conditions are uncertain and could have a positive or negative impact on execution in the short term.

Musk also defended Tesla's repeated price cuts, saying the measures were taken to combat potential sales declines due to economic uncertainty. "When interest rates rise dramatically, you really need to lower the price of the car because the interest payments will raise the price of the car," Musk said. The CEO noted that Tesla has also revived its referral program to boost sales. 

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Tesla finally built its long-delayed Cybertruck at Giga Austin over the weekend, though few details were released at the time. With Wednesday's earnings report, the company still gave investors and analysts more hope. "It's always very difficult to predict an initial increase, but I think we'll have mass production next year and delivery this year," Chief Executive Officer Elon Musk said Wednesday.

"The demand is so surreal that we don't see the hook," Musk said, adding that the Cybertruck "has a lot of new technology...so it's going to grow as fast as the slowest, least likely element of the entire supply chain."Tesla didn't provide further information about the Cybertruck, including next year's production capacity, pricing and other technical data. 

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The new Tesla CyberTruck is said to be launched in Austin, Texas and the revenue that it made this time was reported at a whopping $25 Billion but it didn’t satisfy the profit needs as the Vehicles price was dropped after it was made.