2023-10-20 00:00:00
Written by Samah Labib Friday, October 20, 2023 03:00 AM The Verge report stated that Tesla company It is witnessing a decline in its profit margins, which came due to price cuts, and the company today announced net profits of $1.9 billion on revenues of $23.4 billion during the third quarter of 2023. The numbers represent a slight increase in revenues, from $21.4 billion at the same time. than last year, but a significant decline in profits.
Profits were down from the same time last year, when revenue was $21.4 billion on earnings of $3.3 billion.
Tesla also missed the target date for the Cybertruck delivery event. The company’s CEO Elon Musk had planned the delivery event sometime in the third quarter. The company now plans to make the first deliveries on November 30. Musk said that the Cybertruck will take 18 months before becoming a shareholder. Significant cash flow.
The company’s operating margins fell for the third straight quarter, indicating that Tesla’s price cuts continue to negatively impact its bottom line.
Tesla pointed to several trends, for example, production decreased while the company modernized its factories, which led to a significant decrease in deliveries.
The company also says it is making significant investments in artificial intelligence and has powered one of the world’s largest supercomputers, doubling its computing capacity since just last quarter.
However, the drop in quarterly revenue was another disappointing turnaround for the company following Tesla’s third-quarter delivery and production numbers fell short of expectations.
Tesla had warned that planned closures of its factories in Austin, Texas, and Shanghai for improvements would result in fewer vehicles being produced and delivered, but even optimistic investors were concerned regarding the lower numbers.
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