"During a high interest rate environment, we believe focusing on investments in R&D and capital expenditures for future growth, while maintaining positive free cash flow, is the right approach." As the RHS chart below shows, Tesla still has considerable edge over the industry with regard to margins. Revenue was impacted by the following items: + growth in vehicle deliveries + growth in other parts of the business - reduced average selling price (ASP) YoY (excluding FX impact) - negative FX impact of $0.4B Free cash flow disappointed at $848 million, well below the estimate of $2.59 billion. And Tesla still sees production 1.8 million vehicles this year (in line with the estimate of 1.82 million). Tesla's automotive gross margins ex-regulatory credits for the quarter was 16.3% (below expectations of 17.7%) and that was helped by a boost in regulatory credits ... Tesla noted that while deliveries rose YoY, they declined sequentially...