Tesla’s third-quarter results reported by the company fell slightly short of the expectations of Wall Street analysts surveyed by LSEG.
As reported by the company, in the third quarter, Tesla’s earnings per share were 72 centswhile analysts predicted earnings per share of 58 cents. The company’s revenues amounted to $25.18 billion in the third quartercompared to the expected level of USD 25.37 billion.
Compared to the quarter of the previous year, revenues increased by 8%. In the third quarter of 2023, Tesla’s revenues amounted to USD 23.35 billion. Meanwhile net income increased to approximately $2.17 billion, or 62 cents per sharefrom $1.85 billion, or 53 cents per share, a year earlier.
Profit margins supported by CO2 credits
Profit margins were strengthened by USD 739 million in revenues from the resale of unused regulatory carbon credits for the automotive industry. Automakers are required to obtain a certain number of regulatory credits each year. If they can’t meet their goal, they can buy credits from companies like Tesla, which has excess credits because it only produces electric vehicles.
Revenues from the automotive industry increased by 2%. up to USD 20 billion from $19.63 billion in the same period a year earlier and are roughly flat as of late 2022. Revenues from energy generation and storage increased by 52%. to $2.38 billionwhile services and other revenue, which includes revenue from out-of-warranty repairs of Tesla vehicles, increased by 29%. to $2.79 billion.
Musk predicts 20-30 percent. production increase next year
CEO Elon Musk said on an earnings conference call that he believed that sales of electric vehicles will increase by 20 to 30 percent next year.due to the introduction of cheap models and the appearance of autonomous vehicles.
In a presentation to shareholders, Tesla stated that Cybertruck became the third best-selling all-electric vehicle in the USright behind the Model 3 and Model Y. Tesla. Unfortunately, there is no more precise data because the company does not provide sales results by model.
Tesla’s pickup truck struggled with quality issues despite its third quarter in the US Tesla has sold over 16,000. Cybertrucks, according to Kelley Blue Book estimates. The manufacturer’s announcement shows that Cybertruck “achieved a positive gross margin for the first time.”
Earlier this month, Tesla announced… vehicle deliveries in the third quarter at 462,890. The company also said it produced 469,796 electric vehicles in the three-month period ending September 30.
