Tesla revenue is up 24% YoY reaching $23.3B for Q1 2023. Due the large price reductions on Model 3 and Y needed to increase demand, GAAP net income dropped -24% to $2.5B. Tesla is strategically choosing to sacrifice profit margin to keep production at full capacity. They believe over the lifetime of the vehicle, they can continue to generate revenue from the fleet through autonomy, insurance, supercharging, connectivity, replacement parts and service. Total automotive revenue is $19.96B, up 18% YoY.
Gross profit is down -17% YoY at $4.5B. Total GAAP gross margin is 19.3% and dropped -9.7% YoY versus 29.1% in Q1 2022. Margins were 23.8% in Q4, 2022. Operating cash flow is $2.5B and free cash flow is $0.4B and cash increased $0.2B and reached $22.4B.
Cybertruck factoring tooling on track and they are making Alpha versions. During the earnings call, Elon Musk expressed confidence that the car will be amazing and hall of fame quality. He predicts they will do customer hand-off by end of Q3 2023.
While automotive income dropped, there is a bright spot in the report for stationary storage. At the 40 kWh factory in Lathrop production is ramping. Energy storage deployment increased to 3.9 GWh, an increase of 360% YoY. Q1 2023 Energy generation and storage revenue hit $1.5B and is 148% YoY.
Solar business is up 40% YoY to 67MW. There’s a sequential decline for the quarter and it’s due to weather and supply chain challenges.
Services gross profit reached all time high with almost 8% gross margin. Supercharging is opening up to non Tesla cars and the business is growing. Service and the revenue reached $1.8B and was up 44% YoY. It was $1.7B Q4 2022.