U.S. Stock Movement | Tesla falls over 5% as Q3 net profit declines 29% year-on-year

On Thursday, Tesla fell more than 5%, closing at $416.92. The financial report showed that Tesla's revenue for the third quarter was $28.1 billion, a year-on-year increase of 12%, exceeding analysts' estimates of $26.37 billion; adjusted net profit was $1.77 billion, a year-on-year decrease of 29%, marking the third consecutive quarter of decline; adjusted earnings per share were $0.50, a year-on-year decrease of 31%, lower than analysts' estimate of $0.54. Analysts believe that the decline in net profit is related to Tesla's launch of lower-priced models in the third quarter. In October, Tesla launched standard versions of the Model 3 and Model Y in the United States, with a price reduction of about 12%. Tesla's automotive business gross margin in the third quarter decreased by 1.6 percentage points year-on-year to 15.4%, below the average expectation of 15.6%