Know more than anywhere else [Tesla financial results Q3 summary]

●Sales volume:23.5 billionUSD (market forecast $24.06 billion), year-over-year9% increase, growth rate approx.Low level for the first time in 3 years

● Adjusted EPS:0.66USD (market forecast $0.74), year-over-year37% reduction

●Gross profit margin:17.9％(Market forecast 18.0%), same period last year25.1%Decreased from

● Free Cash Flow (FCF):848 millionUSD (market forecast $2.59 billion), year-over-year74% reduction

● Global shipments:435,000Units (market forecast 456,000 units), approximately for the quarterDecreased after 1 year

●Number of units produced:1.8 million unitsDeferred to (expected:1.82 million units）

Tesla's gross profit margin declined and fell slightly below market expectations in the third quarter. As interest rates rose, price cuts implemented to boost demand resounded. The company summarized several factors that had an impact on sales and profitability in the third quarter.

●positive factors

Increased number of car deliveries, US EV tax deductions, etc.

●negative factors

Higher interest rates, lower prices, lower average selling prices (ASP), research and development costs for “cybertruck” and AI, factory downtime, etc.

Prior to announcing financial results, the company announced that factory downtime (downtime) had an impact on production, and global shipments for the third quarter were about 435,000 units, which was the first time in about a year for the quarter.

The number of cars produced and delivered was higher than the same period last year, but it declined compared to the previous fiscal year. Also, the production volume target for 2023 was left unchanged at approximately 1.8 million units. Investors and analysts have expressed the view that further price cuts are necessary as Tesla aims to achieve the annual target (1.8 million units) by delivering 476,000 cars, a record high in the fourth quarter amid a general deceleration in EV demand.

It is said that Tesla has “more than doubled” computing power for AI projects. This is to switch the increasing training data set and the training of the humanoid robot “Optimus” from coded software to AI. “In order to accelerate AI development, we have introduced one of the world's largest supercomputers, and computing capacity has more than doubled compared to the second quarter,” he pointed out.

“Cybertruck” is about 2 years behind schedule,End of NovemberThe company announced on the 18th that car deliveries would begin on the 18th. Cybertruck is seen as holding the key to Tesla's future growth, which is largely dependent on the sales volume of the Model 3 and Model Y.

Chief Executive Officer Elon Musk (CEO) made it clear at the third quarter financial results briefing that “about 1 million people have reserved Cybertruck,” but warned that it would take at least a year and a half for Cybertruck to “contribute greatly to cash flow.” It is likely to be possible to ship 250,000 units a year, but he pointed out that it probably won't be realized until 2025. “Market launch, mass production, and profitability of rare and special products are unbelievably difficult,” he said.

Morgan Stanley targets stock price from $400380Reduced to dollars;
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Bank of America targets stock prices from $300290Reduced to dollars;
Citi targets share price from $271255Reduced to dollars;
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Wells Fargo targets share price from $260250I lowered it to dollars.