Tesla's income dives 44% in Q3 with price cuts, lower deliveries

Revenues fall 22% annually; shares see more than 8% daily loss before mid-day

By Ovunc Kutlu

ISTANBUL (AA) - Tesla saw its income plummet 44% in the third quarter, according to its financial results.

Net income attributable to common stockholders fell to $1.85 billion, down from $3.29 billion during the same period last year.

Total revenues were down 22% to $4.18 billion from $5.38 billion, according to the statement released late Wednesday.

Income from operations declined 52% and free cash flow plummeted 74% year-on-year.

"During a high interest rate environment, we believe focusing on investments in R&D and capital expenditures for future growth, while maintaining positive free cash flow, is the right approach," said the statement.

The American electric carmaker’s stock price fell to as low as $222.22 around 10.30 a.m. EDT on the Nasdaq for a more than 8% daily loss.

Tesla, earlier this month, lowered the price of its two models in the US as deliveries posted a decline and came lower than expectations.

The Model 3 Rear-Wheel Drive starts at $38,990, which was more than $40,240 previously. Model Y All-Wheel Drive starts at $48,490, down from more than $50,000, according to its website.

Tesla produced more than 430,000 vehicles and delivered over 435,000 during the July-September period, according to a statement Oct. 2, which missed market estimates.

The figures are down from 480,000 vehicles produced and more than 466,000 delivered in the preceding three-month period.


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