Tesla reported an adjusted earnings per share (EPS) of $0.48, surpassing the anticipated $0.43, although this marks a 4% decline compared to the previous year.
The company’s adjusted EBITDA reached $3.90 billion, beating market forecasts of $3.71 billion, but reflecting an 8% year-over-year drop.
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Concerns Surround Tesla’s Profit Decline
Revenue from Tesla’s automotive sector fell by 3% year-on-year to $20.56 billion. Meanwhile, earnings from energy generation and storage dropped 16% to $2.88 billion. Conversely, revenue from services and other activities saw a 33% increase, reaching $4.61 billion.
The company’s operating profit plummeted by 56% compared to the previous year, standing at $718 million. The operating profit margin also declined by 322 basis points to 2.6%.
Tesla’s adjusted net income decreased by 4% to $1.70 billion, while free cash flow saw a significant drop of 62%, amounting to $1.53 billion.
Despite these declines, the company’s cash and investment holdings rose to $45.4 billion.
During the third quarter, Tesla delivered 486,532 vehicles, representing a 2% decrease from the same period last year.
Tesla Advances in Robotaxi and AI Innovations
In its financial disclosure, the company highlighted ongoing progress in autonomous driving and robotics.
On September 3rd, Tesla revealed that it had begun offering robotaxi services with its Cybercab fleet in Austin. Additionally, it announced that large-scale production of Optimus humanoid robots has commenced at its Fremont plant.
The company has also initiated operations at its new Megafactory in Texas, which is expected to have an annual capacity of 50 GWh.
Moreover, Tesla’s Full Self-Driving (FSD) subscriptions surged by 67% year-over-year, reaching 1.74 million.
*This does not constitute investment advice.