Tesla reports Q3 results with revenue increase, net income plunge

US top electric automaker Tesla Inc on Wednesday reported its financial results for the third quarter of 2023 with total revenue of US$23.35 billion, up 9 percent year over year.

The revenue increase was impacted by the growth in vehicle deliveries. In the third quarter, Tesla produced 430,488 vehicles and delivered over 435,059 vehicles, up 18 percent and 27 percent year over year respectively.

The company's net income attributable to common stockholders (GAAP) fell 44 percent to US$1.85 billion in the third quarter from the same period a year ago, as EV prices put pressure on margins.

Its cost of goods sold per vehicle decreased to about US$37,500 in the quarter. "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," the company said.

"With a combined gross profit generation of over US$0.5 billion in the quarter, our Energy Generation and Storage business and Services and Other business have become meaningful contributors to our profitability," it added.

Tesla's quarter-end cash, cash equivalent and short-term marketable securities increased year over year to US$26.1 billion in the third quarter.

During the quarter the company brought down several production lines for upgrades at various factories, which led to a sequential decline in production volumes. "Our Shanghai factory has been successfully running near full capacity for several quarters. Giga Shanghai remains our main export hub," Tesla said.