The electric car manufacturer’s third-quarter earnings, which missed on both the top and bottom lines, caused shares of Tesla to drop more than 6% on Thursday.
Tesla’s $23.35 billion in revenue and 66 cents per adjusted share in profitability were less than what Wall Street had anticipated. It was the first time since the second quarter of 2019 that Tesla missed on both earnings and revenue.
Elon Musk, the company’s CEO, expressed concern about the high interest rate environment and said it made it more difficult for consumers to purchase cars during the company’s quarterly call with investors.
Prioritising cost reduction before going “full-tilt” on developing a new factory in Mexico, Musk said Tesla is striving to lower the price of its cars.
On the call, Musk added, “We have to lower the price of our products so that people can buy it.
Due to Tesla’s “lower gross margin profile,” Bank of America analysts decreased their expectations for the company’s fourth quarter and future years while maintaining a neutral rating on the stock. The researchers were rather surprised by how much time Musk spent talking about the world economy.
The impacts of the current high interest rates were given considerable attention by Elon Musk (CEO), which was unusual, according to a report published on Thursday by Bank of America analysts.
Source (CNBC)
