Revenue was down YoY (6.3B versus 6.8B).
The car business is awful, and millennials hate cars so there isn't much of a future for any of them. I would not want to own stock of any car company.
Revenue was down YoY quarter because Tesla sold lot more cheaper Model 3 this quarter than this time last year. 3rd quarter last year, Tesla only sold long range rwd, awd, and performance Model 3. There was no cheaper short range Model 3. They sold crap load of Model 3 Performance Q3 last year at close to $80k each. This year Q3, Tesla sold crap ton of Model 3 SR+ which is $39k car. And Tesla lowered the prices on all their cars this year by huge amount, especially the higher price Model S, X, and Model 3 Performance.
Tesla also sold like 10k fewer S and S models which also lowered the ASP. And Tesla didn't offer lease on Model 3 Q3 last year. Q3 this year, Tesla leased 6,498 Model 3. And because of accounting rules, Tesla can't fully realize full sales price on lease vehicles at the time of sale. So that also lowered the revenue. Revenue down YoY quarter argument is super weak one and bears grasping at straws. The stupid Tesla shorts got their face ripped off the past two days after Wednesday Q3 earnings report. If they're too stupid to realize why Q3 revenue was down YoY, then they deserved to get their face ripped off. But their pain is not going to end here. Shorts are going to get their arms and legs chopped off before this is all over.
As for car business being awful, it will be awful going forward for legacy ICE automakers. Most will go bankrupt due to Tesla and Chinese EV. Millennials don't hate cars. They hate ICE cars. They love Tesla. And there won't be much future for cars that's not EV and autonomous in the future. Tesla checks all the boxes and Tesla is going to dominate. You just watch.
Tesla doesn't just make cars though...and to me their true value is not in the cars they build but their position with battery and, soon, solar tech.
Tesla held conference call today after the market closed and revealed Version 3 of their solar roof tile. It's good listen.
https://ir.tesla.com/events/event-details/solar-roof-conference-call-webcast
I just checked the solar tile prices on Tesla website and it's about 40% cheaper than before and cheaper than getting new regular roof + new solar panels. Tesla is going to ramp up production of the solar roof tiles and bundling it with Tesla Powerwalls. They're going to sell crap load of this in about a year or two. In about 5 years, I suspect Tesla energy will be just as big if not bigger than Tesla auto. Tesla is going to print money in couple of years. Guaranteed.