Early Thursday trading saw Tesla (TSLA) shares taking an 8% knock as markets responded to the go-green energy giant’s Q3 financial results. Yahoo Finance reports that the company missed both its top and bottom lines.
Tesla shares take a knock after missing Q3 targets
The company’s Q3 revenue came in at $23.4bn, lower than the predicted $24.06bn mark. Despite this, it is still a 13% increase from the previous year.
Tesla’s net income for this period was $2.3bn, again lower than analyst expectations of $2.56bn. Similarly, adjusted earnings per share (EPS) were $0.66 instead of the expected $0.74. In a statement on its website, Tesla said:
Our main objectives remained unchanged in Q3-2023: reducing cost per vehicle, free cash flow generation while maximizing delivery volumes and continued investment in AI and other growth projects. Our cost of goods sold per vehicle decreased to -$37,500 in Q3.
The company also confirmed its ongoing cost-cutting mission and cited factory upgrades as part of this process. Analysts attribute the decrease in profitability to downward pressure on margins since the company embarked on the stated cost-cutting venture.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
Tesla further stated its Cybertruck deliveries are on schedule for the 30 November deadline. Yahoo Finance reported that Elon Musk, co-founder and CEO of Tesla, said in a conference call that it would take approximately 18 months before the Cybertruck initiative yields positive results.
The company recapitulated its 1.8 million vehicle production target. In terms of current delivery numbers, this means roughly 500,000 vehicle deliveries during the last quarter of the year.
