Tesla just released its Q3 2023 earnings report, and despite thinning profit margins thanks to price cuts and increases in operating expenses, revenue is still up nearly 9% year-over-year. 

The electric automaker again turned a profit, which makes that 16 quarters in a row in which Tesla has reported a profit. However, Tesla fell short of expectations in regard to both profit per share and revenue.

The main financial details from the Q3 2023 report are as follows:

  •  $  23.350 billion in revenue
  •  $  0.66 profit per share (Non-GAAP)

That's down from $24.9 billion in revenue in Q2. Here's what Tesla was expected to report, according to analysts.

  • Profit per share: ~ $0.73 to $0.78 per share
  • Revenue: ~ $24.256 to $24.420  billion

The automaker commented specifically on profitability too, in part stating that an "increase in operating expenses driven by Cybertruck, AI and other R&D projects" as well as the "cost of production ramp and idle cost related to factory upgrades" impacted profits.

One area of concern – though an unsurprising one – is Tesla's thinning profit margins after a slew of price cuts throughout the year. Those cuts have happened basically across the board, but have especially dropped prices on the Model 3 and Model Y as Tesla seeks a greater degree of sales volume.

It's had a positive year on that front; a little less so in Q3. Deliveries dropped to 435,059 in Q3, down from 466,140 in Q2 – but still way up from 343,830 in Q3 2022. And at least some of that decline this quarter was due to factory downtime, which was expected.

"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," Tesla said in a statement. "Our cost of goods sold per vehicle decreased to ~$37,500 in Q3. While production cost at our new factories remained higher than our established factories, we have implemented necessary upgrades in Q3 to enable further unit cost reductions. We continue to believe that an industry leader needs to be a cost leader."

Here's a look at the financial summary:

You'll find Tesla's release in its entirety linked below. 

Tesla Q3 2023 Earnings Report

More information to follow from details released on the conference call later today.

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