Tesla's Profit Declines for Fourth Consecutive Quarter Despite Rising Sales and Revenue
Tesla's third-quarter profit fell 37% to $1.4 billion, marking its fourth consecutive decline. Despite rising sales, shares dropped due to competition and increased investments in new technologies.
BBC NewsTesla profits slide despite record revenue
The GuardianTesla reports steep drop in profits despite US rush to buy electric vehicles
Business InsiderTesla earnings recap: Musk talks up future products after stock falls on profit miss
TechCrunchElon Musk frets over controlling Tesla's 'robot army' as car biz rebounds slightly
Overview
Tesla's third-quarter profit declined by 37% to $1.4 billion, marking the fourth consecutive quarterly drop, despite an increase in overall revenue to $28.1 billion.
Earnings per share, excluding charges, dropped to 50 cents, missing Wall Street's 56 cents forecast. Gross margins hit 18% for 2023, but remained lower than last year.
Profit margin decrease from 25% four years ago is attributed to aggressive discounts and incentives, countering intensified global competition from rival EV makers.
CEO Elon Musk is shifting investor focus from car sales to emerging technologies like robotaxi, AI, and Optimus robots, with rising R&D costs impacting current profits.
Tesla's shares declined in after-hours trading following the earnings announcement, which also precedes a crucial shareholder vote on Elon Musk's potential $1 trillion pay package.
Analysis
Center-leaning sources frame this story by tempering positive financial news with caveats and directly attributing Tesla's profit decline to Elon Musk's controversial political actions and strategic missteps. They emphasize the company's struggles to meet expectations, suggesting a need to distract from core business issues while highlighting past unfulfilled predictions.