Tesla's Third-Quarter Earnings Miss Forecasts

Tesla reported a decline in third-quarter earnings as the electric vehicle manufacturer fell short of Wall Street's expectations.

Tesla reported adjusted earnings of $2.3 billion, or 66 cents per share, marking a 37% decrease from the previous year and the company's smallest profits in two years. I Photo: Tesla X

In the quarter, Tesla reported adjusted earnings of $2.3 billion, or 66 cents per share, marking a 37% decrease from the previous year and the company's smallest profits in two years, as stated by Chris Isidore in CNN.

Analysts surveyed by Refinitiv had projected a slowdown in earnings but still anticipated Tesla to report earnings of 73 cents per share.

Tesla also missed third-quarter revenue, recording $23.4 billion, which was a 9% increase from the prior year but fell short of the $24.1 billion forecasted by analysts. To boost sales demand in the face of increased competition in the electric vehicle market, Tesla has repeatedly reduced the prices of its vehicles.

The company has experienced thinner profit margins, even though it remains more profitable than traditional automakers. Tesla's gross margin fell to 17.9%, which is a 7-percentage point drop from the prior year.

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