"Tesla has dug its own grave with Cybertruck": the company's shares fell again
Tesla's financial statements disappoint investors for the third quarter in a row
After the release of Tesla's financial statements for the third quarter, its quotes fell by more than 4% in the post-market. The report disappointed investors on several counts.
Source. The Wall Street Journal writes about it.
The company's profits fell by 44% to $1.85 billion, stronger than Wall Street's forecasts. At the same time, revenue increased by 9% to $23.4 billion.
The operating profit margin fell to 7.6% from 17.2% a year ago, which is already the level of many traditional automakers.
The profitability of the core business, excluding government subsidies, also declined to 16.3% from 26.8%.
The average price of a car sold fell to $44 thousand from $54 thousand a year ago.
Elon Musk admitted that the company "dug its own grave with Cybertruck": production of the electric pickup is difficult to establish, and it is expected to make a profit only in a year.
He noted delays in the construction of a plant in Mexico and a general deterioration in business conditions due to two wars and rising rates.
However, he noted that "you can't grow by 50% forever, or you will exceed the mass of the visible universe."
Musk did not revise the physical sales forecast for the year – 1.8 million electric vehicles – but did not revise the sales forecast.
It is possible that the years of Tesla's rapid growth are forever in the past, analysts say. The company with a narrow model range is facing growing competition from other manufacturers amid falling consumer confidence and high interest rates. At the same time, the company has fewer opportunities to reduce the price of its products at the expense of profitability.
Background. As reported, Tesla's electric car deliveries in the third quarter did not meet investors' expectations.
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