Tesla shares reportedly slid nearly 5% in after-hours trading on Wednesday night after several misses of Wall Street expectations in its third quarter earnings of 2023.
According to the Guardian, Q3 revenue was US$23.4bn compared with analyst predictions of $24.09bn with total gross profit declining 22% year on year. Earnings per share were $0.66 compared with a predicted $0.74, with net income down to $1.9bn from $3.3bn a year ago.
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The report noted analysts had expected the EV maker’s profitability to decrease since it reported a 7% Q3 decline in vehicle deliveries versus Q2 2023. Tesla reportedly produced 416,800 Model 3s and Model Ys compared with 345,988 in Q3 2022 and delivered 13,688 Model S and Model X compared with 19,935 a year ago.
According to the Guardian, citing an analyst, the results marked an “underwhelming quarter” and implied demand for vehicles was still weak. Coming after Tesla cut prices for some models earlier this year to increase consumer demand, it implied more price cuts were on the horizon.
“The big question is if this is just a blip, or signs of a bigger shift among consumers as rising interest rates and a weaker economic backdrop discourage consumers from making big-ticket purchases,” the analyst said.
