2023-10-18 21:38:58
The American car manufacturer Tesla on Wednesday revealed third-quarter results below analysts’ expectations, stressing that production costs at its new factories remained higher than at its old manufacturing sites in a context of falling tariffs.
The group, which has made significant price reductions in recent months, recorded a turnover of 23.35 billion dollars between July and September (+9%) and a net profit per share excluding exceptional items of 66 cents – reference for the markets.
The consensus was for 24.19 billion and 73 cents respectively.
Net profit came to $1.85 billion, a drop of 44% year-on-year.
The manufacturer warned on October 2 that its production and delivery volumes had been affected in the third quarter by planned maintenance operations.
Wedbush analysts then noticed a volume of deliveries lower than market expectations due to a longer than expected shutdown of the factories in Austin (United States) and Shanghai (China), which represented a deficit of approximately 20,000 vehicles.
From July to October, production reached 430,488 vehicles while 435,059 vehicles were delivered, Tesla said, without giving geographic details.
He intends to increase his production “as quickly as possible”, he assured Wednesday, while warning that “some years it is possible that we grow faster and others less quickly”.
The group has once once more confirmed its objective of producing 1.8 million vehicles in 2023.
“Tesla continues to leverage its cost efficiency through price reductions to boost electric vehicle sales,” Third Bridge analyst Shoggi Ezeizat said in a note.
– Fall in margin –
But the markets have recently been on the lookout for any element illustrating the impact of these price cuts on the group’s operating margin: it fell to 7.6% in the third quarter, compared to 17.2% a year ago. earlier.
In a context of high interest rates, “we must make our cars more affordable” so that people can buy them, explained Elon Musk, boss of Tesla, during an audio conference.
“According to our experts, most traditional car manufacturers are struggling to achieve profitability in their electric divisions and catching up with Tesla seems unlikely in the near future,” noted Mr. Ezeizat, nevertheless emphasizing that Chinese manufacturers like BYD “ are rapidly introducing highly competitive electric vehicle models.”
In its press release, Tesla also mentioned the Cybertruck, its electric pickup truck with a futuristic silhouette, the first example of which left the factory in mid-July.
“Deliveries of the Cybertruck remain scheduled for later this year,” the manufacturer said.
In the documentation accompanying its results, there is a photo showing a Tesla truck with three Cybertrucks on its trailer, and it indicates that the first deliveries should begin in November.
Elon Musk estimated an annual production rate of “a quarter of a million”, which should be reached “during 2025”. “That’s my best guess,” he said.
“We are doing everything possible to simplify the vehicle to achieve a level of units per minute unprecedented in the automotive industry,” he confided.
“If you want to do something innovative and beautiful, it is extremely difficult (…) because you have to invent the vehicle” without copying what already exists, he noted.
But still no indication concerning the different versions available or their prices, regarding which nothing has been officially disclosed since the presentation of the vehicle in 2019.
Tesla also assured that progress continues in the design of its next generation of platform.
Furthermore, it intends to reduce production and operational costs through innovation, and accelerate its sales-related profits through the use of artificial intelligence and software, in particular.
Asked regarding the timetable for the giant factory announced in Monterrey (Mexico), Mr. Musk clarified that preparations were underway to start construction.
In electronic trading following the New York Stock Exchange closed, Tesla shares fell 3.80% to $233.47.
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