The Tesla logo is displayed on an exterior wall of the Tesla Gigafactory in Gruenheide near Berlin, Germany, 03 January 2023. EFE/EPA/Filip Singer

Tesla’s net profit fell 20.3% in the first nine months of the year

Washington, Oct 18 (EFE).- Tesla presented its third-quarter earnings report on Wednesday evening, revealing a net profit of $7.069 billion in the first nine months of 2023, a drop of 20.3% compared to the same period in 2022.

In the third quarter of the year, the electric vehicle manufacturer had a net profit of $1.853 billion, 43.7% less than in 2022.

As the company explained, the production costs of its new assembly plants ” remained higher” than those of its established factories.

In response, Tesla says it implemented “necessary upgrades” in the third quarter “to enable further unit cost reductions.”

Revenues from January through September totaled $71.606 billion, of which $23.350 billion was in the third quarter, a figure below market expectations.

Adjusted gross operating profit (EBITDA) for the first nine months totaled $12.678 billion. In the third quarter, ebitda was $3.758 billion, a decrease of 24%.

For the first half of the year, Tesla’s net income was already down 6.5%.

Earlier this month, Tesla reported that vehicle deliveries fell 7% and production fell 10% between the second and third quarters of the year.

The company cited “planned shutdowns” to upgrade production facilities.

Tesla has also been offering discounts on its vehicles in recent months to stimulate demand, and in August launched new, cheaper versions of the Model X and Model S in the US, amid a price war in North America among major electric car manufacturers. EFE