Tesla Third-Quarter Earnings Slow

Tesla reported adjusted earnings of $2.3 billion in the quarter, or 66 cents a share, down 37% from a year earlier and the smallest profits it reported in two years. 

The company also missed on third-quarter revenue of $23.4 billion, up 9% from a year earlier but short of the $24.1 billion forecast by analysts. Tesla has been repeatedly cutting the prices of its vehicles to boost sales demand in the face of growing electric vehicle competition from traditional carmakers.

The company reported thinner profit margins, even if it is still more profitable than established automakers. Its gross margin fell to 17.9%, down 7 percentage points from a year before. 

Tesla said its profits and sales were both hurt as it temporarily shut several production lines for upgrades, which it said led to a sequential decline in production volumes.

CEO Elon Musk has said the rise in global interest rates is part of the reason for the price cuts by Tesla this year.The carmaker is on track to deliver 1.8 million vehicles for the year. That target would require its fourth quarter sales to be up 17% from what it achieved in the last three months of 2022.

Tesla also said it still expects to begin delivery of the long-delayed Cybertruck pickup by the end of this year. The first deliveries of the Cybertruck are now scheduled for November 30.