Key facts
- Third-quarter revenue was $28.05 billion, beating estimates of $27.88 billion.
- Vehicle deliveries reached 486,532, exceeding expectations.
- The energy storage unit contributed to sales growth.
- Heavy spending on AI and robotaxis weighed on profit.
- Model 3 and Model Y comprised nearly all deliveries.
- Tesla's shares have fallen approximately 14% this year.
Tesla Inc. reported third-quarter revenue of $28.05 billion on Wednesday, surpassing analysts' average estimate of $27.88 billion. The automaker's vehicle deliveries rebounded to 486,532 units, exceeding expectations, and its energy storage business also showed growth. However, significant investments in artificial intelligence and robotaxis impacted profitability.
Deliveries outpaced production for the second consecutive quarter, leading to an inventory drawdown. The company's core automotive business faces competition from newer, often cheaper models, while Tesla relies on its aging Model 3 and Model Y. To boost demand, Tesla has offered cheaper versions and launched a six-seater Model Y in the US.
Tesla's energy unit is seen as a counterweight to its auto business, benefiting from demand for grid-scale batteries. The company is also advancing its self-driving technology, with its Cybercab fleet expanding and robotaxi rides launched in several Florida cities. Tesla won approval for its Full Self-Driving (Supervised) system in the Netherlands and other European countries, though it agreed to rename it Tesla Assisted Driving in Europe.