Tesla Reports a Huge Increase In Profit Margins as Vehicle Production Ramps Up
All the controversy surrounding CEO Elon Musk aside, Tesla (NASDAQ: TSLA) just reported another fantastic quarter. Second-quarter 2022 revenue and profitability were down from the previous couple of quarters but up big versus the same period a year ago. As vehicle production gradually ramps up at factories around the world, profit is on the rise. That doesn't necessarily make the stock a buy, but Tesla continues to prove its automaking capabilities are the real deal.
Tesla's gross profit margin on vehicles was reported at 27.9% in Q2 2022. If you're keeping score, that compares to the stellar 32.9% gross margin in the first quarter of 2022 and -- more importantly -- 28.4% a year ago in Q2 2021. Queue up the music signaling Tesla's imminent doom.
Except there are some caveats to consider with this vehicle gross margin figure. Several factors added up to drag down Tesla's margins on vehicles.
Source Fool.com
