Tesla profits plunge 44%

San Francisco: Elon Musk-run Tesla saw its profits nosediving 44 per cent to $1.85 billion in the third quarter (Q3) from the year-ago period when it had registered $3.3 billion in profits.

The electric car-maker reported $23.4 billion in revenue during the third quarter of 2023, a small increase from $21.4 billion the same time last year.

The company’s operating margins fell for the third quarter in a row, meaning that frequent price cuts have taken its toll on Tesla’s bottom line.

“Our cost of goods sold per vehicle decreased to $37,500 in Q3. While production cost at our new factories remained higher than our established factories, we have implemented necessary upgrades in Q3 to enable further unit cost reductions. We continue to believe that an industry leader needs to be a cost leader,” Tesla said in its quarterly earnings late on Wednesday.

During an earnings call, Musk said that the soon-to-be-delivered Cybertruck will take “18 months before it’s a significant cash flow contributor.”