Leading American automaker Tesla has finally delivered its third-quarter results after the closing bell on October 18, 2023.
As EV-a2z previously reported, Tesla expected lower production and deliveries in Q3 2023 due to the planned factory upgrades. Its electric vehicle production reached 430,488 units, while its deliveries were 435,059 units in the same period.
According to CNBC, TSLA shares surged 2.4% in after-hours trading following the report. However, it declined by over 4% after the Chief forecasted that Cybertruck could not produce positive cash flow for 12 to 18 months after production.
Nonetheless, Tesla stuck to its delivery target of 1.8 million EVs globally in 2023. Without further ado, below are some of the highlights of the Q3 2023 earnings results.
Revenue
Tesla’s revenue in the third quarter reached $23.35 billion. It fell short of Wall Street’s revenue forecast of $24.1 billion.
Notably, Tesla’s overall revenue surged 9% year-on-year last quarter. The Musk-led company indicated in the Update Letter that vehicle delivery growth and price cuts significantly affected its Q3 2023 revenues.
Earnings per share
Tesla reported non-GAAP (non-adjusted) per share of $0.66, Teslarati indicated. However, analysts expect Tesla’s earnings per share to hit $0.72.
Meanwhile, Tesla listed $0.53 GAAP earnings per share, which is still short of analysts’ guidance of $0.64 per share.
Profitability
Tesla had a 7.6% operating margin in the third quarter, while its GAAP operating income totaled $1.8 billion.
It reported a GAAP net income of $1.9 billion. On the other hand, its non-GAAP net income was $2.3 billion.
All that said, Tesla managed to deliver significant profits in this period despite the tough quarter.
However, Tesla reported a 17.2% YoY decline in operating income to $1.8 billion in Q3 2023. As a result, it had an operating margin of 7.6%.
Cash
Tesla enjoyed sequential growth in its quarter-end cash, cash equivalents, and investments by $3.0 billion to $26.1 billion in Q3 2023.
This significant increase is largely due to the company’s $2.3 billion financing activities and $0.8 billion free cash flow.
See Also:
- Tesla launches Model 3 Highland in the UK for a cheaper price
- Tesla releases new hands-free FSD demo video in Austin
- Tesla prompts the US Government to launch stricter fuel efficiency standards
- Tesla to penetrate the South American automotive industry
- Tesla sold 435k cars in Q3 2023, to release earnings on October 18
Tesla undoubtedly leads the global electric vehicle industry with innovative model offerings and sustainable technologies. However, the arrival of new competitive startups and the electrification of legacy automakers will continue to challenge its dominance. That said, it must continue to launch new strategies and models to attract more customers.
