Tesla earns $690m less than expected in third quarter

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Tesla shares slid nearly 5% in after-hours trading Wednesday after several misses on Wall Street expectations in its third quarter earnings of 2023.

Article originally published by The Guardian. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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19 Oct 2023

Revenue for the third quarter was $23.4bn compared to analyst predictions of $24.09bn, with total gross profit declining 22% year-over-year. Earnings per share were $0.66 compared to a predicted $0.74, translating to a net income of $1.9bn – compared to $3.3bn one year ago.

Analysts had expected the electric carmaker’s profitability to decrease since it reported a 7 percentage point decline in vehicle deliveries in quarter three compared to quarter two of this year. Tesla produced 416,800 Model 3 compact cars and Model Y sport-utility vehicles – its mass-market models – compared with 345,988 in the same quarter last year and 13,688 deliveries of its Model S and Model X premium vehicles, compared with 19,935 at the same time last year.

The report marked an “underwhelming quarter” and implies that demand for vehicles is still weak, said Jesse Cohen, senior analyst at Investing.com. The report,