Tesla reported Q2 2023 earnings on Wednesday, generating the strongest quarterly revenue on record. However, Tesla’s operating margin notably dropped in the quarter, likely due to aggressive price cuts, sending the carmaker’s stock tumbling in the premarket. Additionally, there were no significant updates on the Cybertruck during the earnings call.

Tesla Reports Record Quarterly Revenue, But Margins Drop 9%

Tesla shares are down nearly 3% in premarket trading Thursday after the electric vehicle (EV) giant reported financial results for Q2 2023. The company reported its best-ever quarterly revenue; however, margins dropped notably in the three months, raising concerns among investors.

More particularly, the automaker reported adjusted earnings per share of 91 cents in the second quarter, topping the consensus estimates of 82 cents per share. Revenue came in at $24.93 billion, while analysts estimated $24.47 billion. Net income stood at $2.7 billion in Q2, up 20% year-over-year, though operating income fell 3% to $2.4 billion.

While earnings figures remained vital for Tesla, the same cannot be said for the carmaker’s margins. Operating margins stood at 9.6% in Q2, the lowest for the previous five quarters. The company’s total margins came in at 18.2%, the lowest point for the same period.

Meanwhile, Elon Musk and other Tesla executives failed to disclose precise details about specs and delivery dates for the much-anticipated Cybertruck. The company also expects vehicle production to slow in Q3 due to closings aimed at factory improvements.

Tesla’s Shares Up 170% in 2023

Although the premarket moves represent a noteworthy drop, it does little to affect the company’s impressive stock market performance this year. Following a turbulent 2022 driven by challenging macroeconomic conditions that weighed on investor sentiment, Tesla’s shares have rebounded by a whopping 170% this year.

The recovery can be attributed to a mix of factors, including the comeback of the broader EV market, improving economic circumstances, a resurgence in retail investors’ activity, and Tesla’s aggressive price cuts, which made more of its vehicles eligible for federal tax credits.

In addition, Tesla inked several landmark partnerships with other major automakers to boost the adoption of its North American Charging Standard (NACS). The new partners include Rivian, Ford, Mercedes-Benz, and Nissan.

This article originally appeared on The Tokenist

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