Tesla reported on Wednesday a net income of 2.7 billion U.S. dollars in the second quarter of 2023, a 20 percent increase from the same period last year.

Tesla's quarterly revenue was 24.9 billion dollars for the quarter, which is nearly 47 percent higher than a year ago. Most of the revenue came from Tesla's automotive revenue, which hit 21.3 billion dollars in the second quarter.

The automaker has reduced the cost of its four EV models in the United States, Mexico, Europe and China. The move helped boost its sales in the first half of the year, hitting record Q2 deliveries of 466,140 units. But it also influenced Tesla's automotive margins negatively.

For the second time this year, Tesla's gross margins decreased to 18.2 percent, down from 25 percent in the second quarter of 2022 and down from 19.3 percent last quarter.

Tesla's operating margin dropped slightly from 11.4 percent in the first quarter to 9.6 percent. Its capital expenditures increased 19 percent year on year.

Tesla's number of Supercharger stations and connectors increased 33 percent in the second quarter to 5,265 and 48,082, respectively.

The automaker has been opening its network of Superchargers to other automakers, including Ford, General Motors and Nissan, in recent months.

Tesla closed out the quarter with 1 billion dollars in free cash flow, up from 441 million dollars by the end of the first quarter.

The company's full-year outlook hasn't changed. "For 2023, we expect to remain ahead of the long-term 50 percent CAGR with around 1.8 million vehicles for the year," it said in the earnings report.

The factory in China's Shanghai has been successfully running near full capacity for several months. "Gigafactory Shanghai remains our main export hub," it added.