Tesla Q3 Earnings Highlights: Revenue Miss, EPS Miss, Cybertruck Launch Set For November And More

Electric vehicle giant Tesla Inc TSLA reported third-quarter financial results after the market close Wednesday. Here are the key highlights.

What Happened: Tesla reported third-quarter revenue of $23.35 billion, which was up 9% year-over-year. The revenue total missed a Street consensus estimate of $24.38 billion, according to data from Benzinga Pro. 

The company attributed the fluctuations in revenue to growth in vehicle deliveries, growth in other business lines and negatively impacted by a lower average selling price and negative foreign exchange impact.

Automotive revenue was $19.6 billion, up 5% year-over-year.

Tesla reported third-quarter production of 430,488 units and deliveries of 435,059 units.

Tesla reported adjusted earnings per share of 66 cents in the third quarter, which missed a Street consensus estimate of 73 cents.

Operating margins were 7.6% in the third quarter.

The company ended the third quarter with 5,595 Supercharger stations and 51,105 Supercharger connectors, both figures were up 31% year-over-year.

Solar deployed in the third quarter was 49 MW, which was down 48% year-over-year. Energy storage was 3.98 GWh in the third quarter, up 90% year-over-year.

The company said operating income was impacted by expenses related to the Cybertruck launch, investments in artificial intelligence and other R&D projects.

Tesla ended the third quarter with $441 million in digital assets, down from the $465 million reported in the second quarter.

Related Link: Trading Strategies For Tesla Stock Before And After Q3 Earnings
What’s Next: The company implemented many upgrades in the third quarter to help boost production going forward.
“We continue to believe that an industry leader needs to be a cost leader,” the company said. “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.”
The company said it more than doubled the size of its AI training compute to help grow its dataset and Optimus robot project.
Tesla said Cybertruck began pilot production in the third quarter at Gigafactory Texas, with deliveries anticipated for November 2023.
The company also expects Model Y production to increase in Texas gradually.
“We are planning to grow production as quickly as possible in alignment with the 50% CAGR target we began guiding to in early 2021.”
The company maintains full-year guidance of 1.8 million vehicles produced.

TSLA Price Action: Tesla shares traded at $244.66 at the time of writing, versus a 52-week trading range of $101.81 to $254.63.

Read Next: Here’s How Many Vehicles Tesla Has Delivered, Produced In Each Quarter Since 2019

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