Third-quarter shock for Tesla; profit down 44 percent

The profit of U.S. electric vehicle manufacturer Tesla fell by 44 percent in the third quarter of the year compared to the same period last year, due to the impact of price cuts on automobiles worldwide.

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Third-quarter shock for Tesla; profit down 44 percent

Tesla has announced its financial results for the third quarter of this year.

Accordingly, the company's revenue increased by 9 percent in the third quarter of the year compared to the same period last year, rising to 23.4 billion dollars. Tesla had generated 21.5 billion dollars in revenue in the third quarter of 2022.

The electric vehicle manufacturer's net profit, meanwhile, fell by 44 percent in the third quarter of this year compared to the same period last year, dropping to 1.9 billion dollars. Tesla's net profit had been 3.3 billion dollars in the same period last year.

The company's earnings per share, which were 95 cents in the third quarter of 2022, also declined to 53 cents in the same period this year.

Tesla's gross profit margin, which was 25.1 percent in the third quarter of last year, was seen to have declined to 17.9 percent in the same period this year, due to the impact of the company's efforts to increase sales through price cuts.

INCREASE IN PRODUCTION AND DELIVERY

In the third quarter of 2023, Tesla produced 430 thousand 488 automobiles globally and delivered 435 thousand 59 vehicles.

The company's vehicle production increased by 18 percent on an annual basis during this period, and the number of vehicles delivered increased by 27 percent.

In a statement from Tesla, it was noted that the company's main goals for the third quarter of this year remained unchanged, stating that these goals were to reduce costs per vehicle, maximize delivery volumes to generate free cash flow, and continue investments in artificial intelligence and other projects.

The statement included the following: "In a high-interest-rate environment, we believe that focusing on R&D investments and capital expenditures for future growth while maintaining positive free cash flow is the right approach."

News Source: AA