Musk Says Further Price Reductions Are Needed Tesla US Stocks Fall 7% Ahead of Market

(Original title: Musk claims to continue to lower prices, with Tesla's US stock market plummeting by 7% before trading.

(Original title: Musk claims to continue to lower prices, with Tesla's US stock market plummeting by 7% before trading...)

Edited by Li Zedong

On October 19th, Tesla (TSLA, stock price of $242.68, market value of $770.26 billion) fell more than 7% in the US stock market. On the news, Tesla's Q3 revenue and profits fell short of expectations, and several investment banks lowered their target prices.

According to the financial report, Tesla's revenue for the third quarter was 23.4 billion US dollars, a year-on-year increase of 9%, which is the slowest growth rate in more than three years, while analysts expect it to be 24.06 billion US dollars; Adjusted earnings per share for the third quarter were $0.66, with analysts expecting $0.74; The market's most concerned gross profit margin dropped to 17.9%, slightly lower than Wall Street's expected 18%.

Photographed by journalist Zhang Jian

It is worth noting that Tesla CEO Elon Musk stated on the third quarter financial report conference call on the 18th that Tesla will still strive to lower the prices of its cars.

He said, "I am concerned about the high interest rate environment we are in. Car buyers are concerned about how much money they need to pay back each month. If interest rates remain high or even higher, it will be much more difficult for people to buy cars

The importance of cost cannot be overemphasized... We must make our products more affordable so that people can afford them. Reducing the cost of Tesla cars is like a 'game of power, just a few cents'He added.

Like Musk, Tesla's Chief Financial Officer and Chief Accounting Officer Vaibhav Taneja also emphasized that the company will "unwaveringly pursue further cost reduction in 2024", which involves engineering and factory operations.

Photographed by journalist Zhang Jian

According to reports, Tesla's total automobile production in the third quarter was 430488 units, an increase of 18% year-on-year; The total shipment volume was 435059 vehicles, a year-on-year increase of 27%; The production of Model 3/Y in the third fiscal quarter was 416800 units, a year-on-year increase of 20%; The shipment volume was 419074 vehicles, a year-on-year increase of 29%; The production of Model S/X in the third fiscal quarter was 13688 units, a year-on-year decrease of 31%; The shipment volume was 15985 units, a year-on-year decrease of 14%.

On October 18th local time, Tesla CEO Musk stated that energy is becoming the most profitable business, and achieving large-scale production and positive cash flow of Cybertruck will face significant challenges. Cybertruck will take one to one and a half years to contribute to cash flow,One million people have already booked Cyberracks, and Tesla plans to produce 250000 Cyberracks annually by 2025.

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