Tesla Stock Falls 46% from Peak Amid Poor Q3 Earnings, Cybertruck Delays, and Failure to Boost Sales with Price Cuts

Tesla's poor Q3 results marked by decline in revenues and earnings and stunted Cybertruck production, alongside unfruitful price cuts and caution around lower-cost cars, forecast a challenging road ahead for the electric car manufacturer.

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.