Tesla today announced the company’s third quarter financial report for fiscal year 2023. The report shows that Tesla's total revenue in the third quarter was US$23.350 billion, an increase of 9% compared with US$21.454 billion in the same period last year, and US$24.927 billion in the previous quarter; net profit attributable to ordinary shareholders was US$1.853 billion, a decrease of 44% compared with US$3.292 billion in the same period last year, while net profit attributable to ordinary shareholders in the previous quarter was US$2.703 billion.

Tesla's third-quarter revenue and adjusted earnings per share both failed to meet Wall Street analysts' expectations. In a conference call after the release of the financial report, the company's CEO Elon Musk warned that the Cybertruck would not bring significant positive cash flow to Tesla in the next 12 to 18 months after it starts production, and emphasized that the company is focusing on lowering the price of its cars, causing Tesla's stock price to drop nearly 4% after the market closed.

In addition, it is worth pointing out thatThis is the first time since Tesla released its second-quarter 2019 financial report in July 2019 that it failed to meet analyst expectations in both revenue and adjusted earnings per share.

Third quarter results summary:

In the quarter ended September 30, Tesla’s net profit attributable to common shareholders was US$1.853 billion, a 44% decrease from the US$3.292 billion in net profit attributable to common shareholders in the same period last year, while the net profit attributable to common shareholders in the previous quarter was US$2.703 billion. Tesla’s earnings per share attributable to common shareholders in the third quarter was $0.53, a decrease of 44% from the earnings per share attributable to common shareholders of $0.95 in the same period last year, while earnings per share attributable to common shareholders in the previous quarter were $0.78.

Excluding certain one-time items (not in accordance with U.S. GAAP), Tesla's adjusted net profit attributable to common shareholders in the third quarter was US$2.318 billion, a decrease of 37% from the adjusted net profit attributable to common shareholders of US$3.654 billion in the same period last year, while the adjusted net profit attributable to common shareholders in the previous quarter was US$3.148 billion. Excluding certain one-time items (not in accordance with U.S. GAAP), Tesla's adjusted earnings per share attributable to common shareholders in the third quarter was $0.66, a decrease of 37% from the adjusted earnings per share attributable to common shareholders of $1.05 in the same period last year. The adjusted earnings per share attributable to common shareholders in the previous quarter was $0.91. This performance failed to meet analysts' previous expectations. According to data provided by Yahoo Finance Channel, 26 analysts had previously expected Tesla’s adjusted earnings per share to reach $0.72 in the third quarter.

Tesla's total revenue in the third quarter was US$23.350 billion, an increase of 9% compared with US$21.454 billion in the same period last year, and US$24.927 billion in the previous quarter. This performance also failed to meet analysts' previous expectations. According to data provided by Yahoo Finance Channel, 25 analysts had previously expected Tesla’s third-quarter revenue to reach $24.1 billion on average.

Tesla's total gross profit in the third quarter was US$4.178 billion, a decrease of 22% from US$5.382 billion in the same period last year. Tesla's total gross profit margin in the third quarter was 17.9%, a decrease of 719 basis points from 25.1% in the same period last year and 18.2% in the previous quarter.

Tesla's operating profit in the third quarter was US$1.764 billion, a 52% decrease from US$3.688 billion in the same period last year, and US$2.399 billion in the previous quarter. Tesla's third-quarter operating profit margin was 7.6%, a decrease of 964 basis points from 17.2% in the same period last year and 9.6% in the previous quarter.

Tesla’s adjusted EBITDA (net profit before interest, taxes, depreciation and amortization) in the third quarter was US$3.758 billion, a decrease of 24% from US$4.968 billion in the same period last year and US$4.653 billion in the previous quarter. Tesla's adjusted EBITDA margin in the third quarter was 16.1%, a decrease of 706 basis points from 23.2% in the same period last year and 18.7% in the previous quarter.

Performance of each department:

Tesla's total revenue from the automotive business in the third quarter was US$19.625 billion, an increase of 5% compared with US$18.692 billion in the same period last year, and US$21.268 billion in the previous quarter. in:

-Revenue from the automobile sales business was US$18.582 billion, compared with US$17.785 billion in the same period last year and US$20.419 billion in the previous quarter;

-Revenue from automotive regulatory credits was US$554 million, compared with US$286 million in the same period last year and US$282 million in the previous quarter;

-Revenue from the car rental business was US$489 million, compared with US$621 million in the same period last year and US$567 million in the previous quarter.

Tesla’s revenue from power generation and energy storage business in the third quarter was US$1.559 billion, an increase of 40% compared with US$1.117 billion in the same period last year, and US$1.509 billion in the previous quarter.

Tesla’s revenue from services and other businesses in the third quarter was US$2.166 billion, an increase of 32% from US$1.645 billion in the same period last year, and US$2.150 billion in the previous quarter.

Production and delivery data:

Tesla's total vehicle production in the third quarter was 430,488 vehicles, an increase of 18% compared with 365,923 vehicles in the same period last year. Among them, the production of Model S and Model

Tesla's total vehicle deliveries in the third quarter were 435,059 vehicles, an increase of 27% compared with 343,830 vehicles in the same period last year. Among them, the delivery volume of Model S and Model

Costs and expenses:

Tesla's total cost of revenue in the third quarter was US$19.172 billion, compared with US$16.072 billion in the same period last year. in:

-The cost of revenue of the automobile sales business was US$15.656 billion, compared with US$13.099 billion in the same period last year;

- Cost of revenue from the car rental business was US$301 million, compared with US$381 million in the same period last year;

-The overall operating costs of the automotive business were US$15.957 billion, compared with US$13.480 billion in the same period last year;

-The cost of revenue of the power generation and energy storage business was US$1.178 billion, compared with US$1.013 billion in the same period last year;

- Cost of revenue from services and other operations was US$2.037 billion, compared with US$1.579 billion in the same period last year.

Tesla's total operating expenses in the third quarter were US$2.414 billion, an increase of 43% from US$1.694 billion in the same period last year, and US$2.134 billion in the previous quarter. Among them, Tesla’s research and development expenses in the third quarter were US$1.161 billion, compared with US$733 million in the same period last year; sales, general and administrative expenses were US$1.253 billion, compared with US$961 million in the same period last year.

Cash Flow and Capital Expenditure:

Tesla’s net cash from business operating activities in the third quarter was US$3.308 billion, while net cash from business operating activities in the same period last year was US$5.100 billion, a year-on-year decrease of 35%.

Tesla’s capital expenditures in the third quarter were US$2.46 billion, an increase of 36% compared with US$1.803 billion in the same period last year.

Tesla's free cash flow in the third quarter was US$848 million, a 74% decrease from US$3.297 billion in the same period last year.

As of the end of the third quarter, Tesla's total cash and cash equivalents were $26.077 billion, an increase of 24% from $21.107 billion as of the end of the third quarter of 2022.

Outlook:

In terms of production, Tesla said that it plans to increase production as soon as possible in order to achieve the 50% compound annual growth rate target that the company began to give guidance in early 2021. Production may increase relatively quickly in some years and relatively slowly in other years, depending on many factors. For 2023, Tesla expects its production growth rate to remain ahead of a long-term compound annual growth rate of 50%, with total annual production expected to reach about 1.8 million vehicles.

Tesla said it has sufficient liquidity to fund its product roadmap, long-term capacity expansion plans and other expenses. In addition, Tesla said it will manage the company's business to maintain a strong balance sheet during this uncertain period.

Tesla said it is continuing to execute innovative plans to reduce manufacturing and operating costs; over time, it expects AI (artificial intelligence), software and fleet-based profits to accelerate in addition to hardware-related profits.

Tesla said the Cybertruck remains on schedule and will be delivered later this year. Additionally, Tesla is continuing to make progress on its next-generation platform.

Stock price changes:

On that day, Tesla's stock price fell by $12.17 in regular trading, closing at $242.68, a decrease of 4.78%. In the subsequent after-hours trading as of 6:58 pm Eastern Time on Wednesday (6:58 am Beijing time on Thursday), Tesla's share price fell again by $9.02 to $233.66, a decrease of 3.72%. In the past 52 weeks, Tesla's highest price was $299.29 and its lowest price was $101.81.