Tesla Q3 Earnings

X: TESLA

Tesla’s third-quarter results were released on 10/18, and the automotive company missed its earnings and revenue targets for the first time since the second quarter in 2019.

Some of the loss in revenue growth can be attributed to a reduced average selling price and a $0.4 billion negative foreign currency impact. The negative impacts on profitability growth include a reduced average selling price, increased operating expenses, increased production costs, and a negative FX impact.

In the (unaudited) financial summary table shown in the Q3 results, total revenues, net income, and earnings per share attributable to common stockholders were all below the 2023 Q2 results. Total car production and deliveries and the cost of goods sold per vehicle have significantly gone down as well, compared to the last fiscal quarters.

During the earnings call, CEO Elon Musk indicated concern regarding the current state of the global economy, explaining the focus on making cars more affordable. Wanting to price the cars at more affordable prices, Musk described the difficulty of buying cars at high prices, specifically citing the high interest rates and understanding how it would drastically affect monthly payments.

The company plans to grow production, expecting 1.8 million cars in 2023, and Cybertruck deliveries remain on track to happen towards the end of 2023. These two major changes, especially deliveries of the Cybertruck, are anticipated to have a positive impact on Tesla’s Q4 earnings, as well as TSLA’s stock price.