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On Wednesday, local time, Tesla announced its third-quarter earnings. But investors are generally concerned about whether demand for electric vehicles is weak and the potential to put pressure on the broader auto industry.
Tesla's third-quarter revenue was $21.45 billion, up more than 50% from the same period last year. But with car sales falling short of expectations and Tesla saying heavier spending on new factories and new battery production squeeze profits, Tesla's revenue remains below Wall Street analysts' forecasts.
Tesla's gross profit margin in the third quarter was 27.9%, lower than expected and 30.5% lower than the same period last year. After the report, Tesla shares fell 4.3% in after-hours trading.
Although Musk has said that Tesla has "no problem with demand", according to Tesla's latest earnings report, deliveries in the third quarter reached a record 343,830 vehicles, and Tesla has a total of nearly 366,000 electric vehicles on its production line, indicating that it produces 22,000 more electric vehicles than it has delivered to customers. Tesla blames this on peak logistics and transportation system update problems.
Tesla said: "Logistics volatility and supply chain bottlenecks remain the most immediate challenges, although they have improved recently. Musk added that the production of the new battery, dubbed 4680, is rapidly gaining traction.
Indeed, decades of high inflation, rising energy bills in Europe and fierce competition in China's electric car market have made analysts deeply skeptical that Tesla will be able to stem the slowdown. Globally, slower economic growth and rising interest rates will reduce consumers' appetite for large purchases.
Despite the suspense in the global auto market, on the same day the Biden administration announced a $2.8 billion grant to 20 companies across the United States funded by the Infrastructure Act to boost the production of batteries for electric vehicles. In addition, the Biden administration wants the United States to build its own supply chain for electric vehicles and be independent of China.
"This is crucial because the future of the car is electric, and the battery is a key part of electric vehicles." US President Joe Biden said at a press conference.
However, China remains one of the largest markets for EV manufacturers in the world. In addition, the rise of Chinese automakers in recent years has gradually penetrated into Western markets.
"The Chinese market is equivalent to Tesla's heart and lungs. If you look at China, NIO, Xpeng, BYD and other electric companies are quite competitive. For Tesla's growth and expansion, there will be an inevitable race in China. China's auto market is a big focus, not just in terms of numbers, but about how much attention is paid to China; This race is not only for the rest of the year, but for 2023. Daniel Iyers, managing director of Wade Bush Securities, said.
(Editor: Jin Liwei)