Palo Alto, CA – Electric vehicle maker Tesla announced its third quarter 2023 earnings results after market close on Wednesday, October 18. The company reported revenue of $24.4 billion, which beat analyst expectations of $24.256 billion. However, Tesla’s adjusted earnings per share (EPS) of $0.73 missed Wall Street forecasts of $0.76 per share.
Tesla’s revenue was lifted by strong vehicle deliveries of 343,830 in Q3, up 22% compared to the same period last year. The company’s popular Model 3 and Model Y led deliveries, with 241,300 and 102,530 vehicles delivered respectively.
However, Tesla’s bottom line was impacted by lower automotive gross margins of 25.1%, down from 27.9% last quarter. Tesla attributed the margin decline to higher raw material and logistics costs.
In other news announced alongside earnings, Tesla said it has started production of its highly anticipated Cybertruck at its Austin, Texas Gigafactory. First deliveries of the electric pickup are expected by the end of 2023.
Additionally, Tesla is pushing back production plans for its Semi truck to 2024. The truck was originally slated to begin production in 2023. The company also announced a new battery cell production line at Gigafactory Texas and opened a new R&D center in Palo Alto that will employ over 1,000 engineers and scientists.
The mixed quarterly results come at a critical time for Tesla as it aims to scale production and deliver over 50% growth in vehicle deliveries for the full year 2023. However, the company faces challenges with supply chain disruptions, rising material costs, and uncertain macroeconomic conditions.
Investors will be watching closely Tesla’s Q4 vehicle delivery figures and automotive margins for signs the company can get production, deliveries, and profitability back on track. Tesla stock initially dropped 3% in after-hours trading following the earnings release.
