TechCrunch:

Tesla’s decision to slash EV prices along put pressure on margins, causing profits to fall 44% in the third quarter from the previous year.

The automaker missed Wall Street estimates with a reported revenue of $23.35 billion in the third quarter, which gained 9% year-over-year thanks to higher deliveries. While higher sales is positive, the company’s continued price cuts, particularly the Model 3 and Model Y vehicles, has squeezed margins — a trend that has continued for the past several quarters.

Tesla reported a gross margin of 17.9% in the third quarter, falling from 25.1% in the same period last year. It’s also down from Q2 when it reported margins of 18.2%.

Tesla closed the third quarter with a free cash flow of $800 million, down from $1 billion last quarter.

 

This story is developing …

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MuskWire TLDR:

Tesla’s decision to reduce prices on electric vehicles (EVs) has led to a 44% decline in profits during the third quarter compared to the previous year. Although the automaker achieved a 9% year-over-year increase in revenue, reaching $23.35 billion, it fell short of Wall Street estimates. The higher sales were overshadowed by the continued price cuts, especially for the Model 3 and Model Y vehicles, which have put pressure on margins. This trend of squeezed margins has persisted for several quarters. In the third quarter, Tesla’s gross margin dropped to 17.9% from 25.1% in the same period last year, as well as falling from 18.2% in the previous quarter. The company closed the third quarter with a free cash flow of $800 million, down from $1 billion in the previous quarter. The situation is still developing.