Tesla shares sink 6% following earnings report, cautious commentary from Elon Musk

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Shares of Tesla fell Thursday after the electric automaker released third-quarter results that missed on top and bottom lines.

During the company's quarterly call with investors, CEO Elon Musk shared pessimistic commentary about the state of the global economy.revenue of $23.35 billion and earnings of 66 cents per share adjusted, both of which fell short of the estimates Wall Street was expecting.

Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weeklyMusk said Tesla is working to bring down the costs of its vehicles, which it will prioritize before the company goes"full-tilt" on building a new factory in Mexico.Analysts at Bank of America reiterated their neutral rating on the stock and reduced their estimates for Tesla's fourth quarter and out years due to its"lower gross margin profile.

Similarly, Morgan Stanley analysts said Thursday that despite Tesla's disappointing third-quarter results, the"cautious commentary" around the economy is what"set the tone for the immediate stock reaction." "In our opinion, 3Q23 was one of the most cautious Tesla conference calls we've heard in years," the Morgan Stanley analysts wrote. They added that it's fair to be concerned about interest rates, but questioned how much of Tesla's caution is actually due to competition or slowing demand.

During the investor call, Musk also said he wanted to"temper expectations for Cybertruck," and he noted that it will take a year or longer before the vehicle is a"significant positive cash flow contributor.

 

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