Tesla Q3 Report 2023

Our main objectives remained unchanged in Q3-2023: reducing cost per vehicle, free cash flow generation while maximizing delivery volumes and continued investment in AI and other growth projects.

Total revenue grew 9% YoY in Q3 to $23.4B. YoY, revenue was impacted by the following items:
+ growth in vehicle deliveries
+ growth in other parts of the business
– reduced average selling price (ASP) YoY (excluding FX impact)
– negative FX impact of $0.4B1

Profitability Our operating income decreased YoY to $1.8B in Q3, resulting in a 7.6% operating margin. YoY, operating income was primarily impacted by the following items:
– reduced ASP due to pricing and mix
– increase in operating expenses driven by Cybertruck, AI and other R&D projects
– cost of production ramp and idle cost related to factory upgrades
– negative FX impact
+ growth in vehicle deliveries (despite the margin headwind from underutilization from new factories)
+ lower cost per vehicle and IRA credit benefit
+ gross profit growth in Energy Generation and Storage as well as Services and Other
+ growth in regulatory credit sales