Overview

• Tesla's third quarter failure to meet expectations included revenue at $23.4 billion versus an expected $24.1 billion, earnings per share of 66 cents versus the anticipated 73 cents, and Q3 deliveries down 6% from Q2.
• The company's aggressive price reductions throughout the year have not resulted in increased sales, products remaining unaffordable due to high interest rates, and have contributed to a lower gross profit margin of 17.9%.
• Tesla's production of its Cybertruck has stalled, with Elon Musk estimating only 250,000 units will be produced per year by 2025. Musk also predicted that it would be a year to 18 months before Cybertruck became a significant positive cashflow contributor.
• The car manufacturer has slowed down its efforts in creating a lower-cost vehicle due to high interest rates and fears of a market collapse. Musk indicated that the progress of this lower-cost car initiative is dependent on economic factors.
• Despite heavy investment in AI, investors remain skeptical about the imminent surge in the sale of self-driving software. A significant increase in capital spending attributed to AI projects has not yet shown clear signs of payoff.