Despite posting a record third-quarter revenue, Tesla has missed the Wall Street estimates as the Elon Musk-headed electronic vehicle maker couldn’t fulfill its sales target, with spending on new factories and battery production affecting the company’s profit margins.
Elon Musk mentioned his company having “excellent electronic vehicle demand” for the upcoming fourth quarter, amid investors’ concerns over the economic slowdown and high price tags of the Tesla cars affecting the company’s future.
However, Reuters reported about company executives admitting to delivery issues. The fourth-quarter car deliveries are to see some 50% growth in the coming months, while the production capacities will go up by 50%.
Tesla’s shares fell by 4.3% in after-market trading, immediately after the revenue figures came in.
While the electronic vehicle maker is maintaining a fast growth track amid recession, investors are keeping their fingers crossed.
Tesla posted a third-quarter automotive gross margin of 27.9%. In 2021, the figure was at 30.5%. Tesla’s third-quarter revenue count is USD 21.45 billion, while analysts predicted it to reach the USD 21.96 billion mark.
The carmaker also had a negative foreign exchange impact of USD 250 million on its earnings due to the US dollar strengthening against other currencies.
“Raw material cost inflation impacted our profitability along with ramp inefficiencies from the new factories in Berlin and Texas, and the production of its new 4680 batteries,” Elon Musk said.
“Logistics volatility and supply chain bottlenecks remain immediate challenges, although improving,” he added.
Elon Musk said that the new battery production has been gaining rapid traction.