Tesla profits dip as it invests in factory upgrades and AI development
Illustration by Alex Castro / The Verge
Tesla continues to see its margins slip due to price cuts. Today the company reported earnings of $1.9 billion in net income on $23.4 billion in revenue during the third quarter of 2023. The figures represent a small bump in revenue, from $21.4 billion the same time last year, but a big dip in profits, falling from $3.3 billion on close to the same amount of revenue.
Tesla also missed its target date for a Cybertruck delivery event. Tesla CEO Elon Musk had planned for a handover event sometime in the third quarter, and the company now plans for its first deliveries to occur on November 30th.
The company’s operating margins fell for the third quarter in a row, signaling that Tesla’s rampant price cutting was continuing to take a toll on…
