Tesla’s (NASDAQ:TSLA) Q3 2023 earnings call comes on the heels of the company’s Q3 2023 Update Letter. Tesla remained profitable in Q3, despite a decrease in delivery and production, as well as a reduction in the company’s average selling price. Still, Tesla posted revenues of $23.35 billion and a 7.6% operating margin in Q3 2023.
Tesla did provide some key information in its Q3 2023 Update Letter. For one, the Cybertruck’s first delivery event has been announced for November 30, 2023, and the cumulative miles of Tesla’s FSD Beta program also rose to 525 million. Tesla Energy turned out to be the dark horse for the quarter with its record energy storage deployments of 4.0 GWh.
The following are live updates from Tesla’s Q3 2023 earnings call. I will be updating this article in real time, so please keep refreshing the page to view the latest updates on this story. The first entry starts at the bottom of the page.
17:30 CDT – And that wraps up Tesla’s Q3 2023 earnings call! This call is quite heavy on information, and Elon Musk was surprisingly cautious. Considering the circumstances across the globe, however, this is understandable. Hopefully, Tesla does survive the storms that are coming.
Thanks so much for staying with us for yet another earnings call live blog. We hope to see you again in the next one!
17:30 CDT – Wells Fargo asks for clarification about Elon Musk’s previous comment about Tesla not going full tilt on Giga Mexico unless the economy is strong and if Tesla’s growth can be achieved without the plant. Musk notes that Tesla will be making a factory in Mexico. It’s just going to be a matter of timing. Tesla is still working on Mexico, but the company is paying close attention to interest rates.
Plus, Giga Texas, despite its scope today, is still just a tiny fraction of the land that Tesla owns. So technically, if push comes to shove, Tesla can just focus on Giga Texas and grow the complex even more. “Tesla is a very capable ship, but even a great ship in a storm has challenges,” Musk said, adding that if interest rates come down, then Tesla should accelerate.
“And I apologize if I’m perhaps more paranoid than I should be. Because that might also be the case because I am. I have PTSD from 2008 — 2017 through 2019 are not perfect either. That was very tough going. So you know, the auto industry is also sort of cyclic. It’s because people tend to hesitate to buy a new car and if there’s uncertainty in the economy,” Musk said.
17:23 CDT – Cannacord asks a question about Tesla’s cost per vehicle coming down in the next quarters. Is this more on scale, cost reductions like giga casting, or other things? The analyst also asks if radar was included in some Model Y in China.
Elon Musk noted that Tesla has not included radar in Model 3 and Model Y cars from Giga Shanghai. Tesla is experimenting with this in the Model S and Model X, but there are no plans to do this for the Model 3 and Model Y just yet.
Musk did note that Tesla is looking into the usability of radar in terms of accident prevention. He stated that cars that had radar before had a radar unit that actually generated more noise than signal. The CEO shared some comments about a Tesla-designed radar.
“A Tesla-designed radar is a high-resolution radar that has some potential to be useful,” Musk said.
17:15 CDT – Elon Musk briefly discussed the “Marie Antoinette vibes” in car pricing. To highlight this, Musk discussed his disdain for a work-from-home system, which he noted was unfair to those who have to be in their workplace for their jobs.
17:14 CDT – A follow-up question about price elasticity was asked. Elon Musk highlighted that regular consumers are concerned with payments. He also reiterated the importance of Tesla’s focus on reducing monthly payments.
“I think there’s very significant price elasticity. To be totally frank, if our car is the same cost as a Toyota RAV4, nobody would buy a RAV4. Or at least they’d be very unlikely to. A lot of these EV incentives are actually very difficult for the average person to access; They can’t front $7,500 for even 6 months,” Musk said.
17:10 CDT – Wolfe Research asks if there is a way to convey the speed of improvement in Tesla’s business. He also asks for any update on the timing of Tesla’s next-generation vehicle. The Tesla team noted that this is an evolving thing, and the company is continuously looking to improve.
As for the timing of the next-generation product, Elon Musk noted that Tesla will not be providing this information at this time.
17:06 CDT – Pierre Farragu asks a question about FSD pricing and if Tesla could evolve the system’s pricing as it improves. Elon Musk noted that the economics of a fully autonomous vehicle are pretty astounding. “The economics of the system are just insanely positive,” Musk said. “We’re a hardware company with software margins.”
17:02 CDT – Analyst questions begin! Truist starts with an inquiry about the Cybertruck and its ramp to significant volume. The analyst asks if a similar ramp should be expected for the next-generation platform.
Elon Musk noted that Cybertruck’s production will ramp in 18 months. So, while the Cybertruck’s ramp will cover three calendar years, it’s really just 1.5 years. The team also noted that the Cybertruck has unique complexities affecting the production ramp.
“We dug our own grave with Cybertruck,” Musk joked, to some laughter from the team. “The Cybertruck has a lot of bells and whistles.”
Musk noted that Tesla’s next-generation platform is quite more conventional in that sense. There are simply not as many new things with the next-gen vehicle. Tesla is doing everything possible to simplify the next-generation vehicle to achieve levels per minute in terms of production. Musk also noted that the next-gen Tesla is “utilitarian but cool and beautiful.”
16:56 CDT – A question about Optimus was asked, and if some of the robots can be deployed next year. Musk noted that at this point, Tesla is not yet ready to discuss updates with the Optimus program. But Optimus is improving, and it’s improving fast.
A final investor question was asked about FSD’s international rollout. Musk noted that regulations in different countries dictate the availability of FSD outside the United States. He also admits that he has been overly optimistic about Tesla’s FSD progress.
16:54 CDT – A question about FSD’s price drop was asked. Musk notes that Tesla simply wants to make the system more affordable. The current price is a temporary low, Musk stated. “Well, we just wanted to make it more affordable,” he noted.
A follow-up question was asked about when Tesla will accept legal liability for FSD. Musk joked that everyone already assumes Tesla has legal liabilities. The team also highlighted that L3 systems like the Mercedes-Benz Drive Pilot are very limited, while Tesla’s FSD system is holistic. “It’s baby AGI,” Musk said.
16:52 CDT – A question about Tesla’s growth rate was asked. Elon Musk notes that Tesla is already one of the fastest-growing automakers today. As for the Robotaxi, Musk noted that the vehicle will definitely be non-driven. He highlighted that he is indeed very excited about autonomy, which is pretty amazing in its own right. This is especially notable since Tesla’s work on autonomy will pave the way for Optimus.
16:47 CDT – An inquiry about Giga Shanghai, Berlin, and Mexico was asked. Tesla notes that for Mexico, Tesla is working with factory design. Tesla is working on new production line for next-generation vehicle at Giga Mexico. Elon Musk states Tesla is laying the ground work for construction at Giga Mexico. “We just want to get a sense of the global economy” before Tesla goes all-in.
Elon notes that Tesla is advertising. He acknowledges that advertising is useful, but if people can’t afford Tesla’s cars, advertising won’t do much good. Musk emphasizes his concerns over interest rates and the importance of Tesla’s focus on reducing monthly payments.
16:44 CDT – A second investor question asked about an update on the company’s 4680 cell initiative. Tesla notes that scrap is down 40%, and production is ramping. Giga Texas is now Tesla’s main 4680 facility.
16:43 CDT – Investor questions begin. First up is the company’s expectations for Cybertruck in 2024. Elon Musk notes that it’s difficult to predict this since the Cybertruck is simply so different. It would be a different thing if the Cybertruck were just a copy of another pickup truck, of course. “The more uncharted the territory, the more unpredictable the outcome,” Musk said.
Musk did state that Tesla would eventually hit about 250,000 Cybertrucks per year. This will probably be achieved sometime in 2025.
16:41 CDT – Tesla’s new CFO, Vaibhav Taneja, discusses the company’s finances. He mentions “despite some factory shutdowns, our cost per vehicle decreased to approximately 37,500.” He also discusses that Tesla is focused on reducing costs and investing in the future as the company navigates the years ahead.
16:38 CDT – Musk also reaffirmed Tesla’s 2023 guidance of 1.8 million vehicles.
16:37 CDT – Elon highlights that while the Cybertruck is being released this quarter, expectations must be set with regard to the vehicle’s production ramp.
“There will be enormous challenges in reaching volumes production and cash flow positive. This is our best product ever, but it’d going to require immense work to get cash flow positive at a price that people can afford.
“I just want to temper expectations for the Cybertruck. It’s a great product, but financially, it will take a year to 18 months before it is a significant cash flow contributor,” Musk said.
16:36 CDT – Elon notes that Tesla Energy and Service now contribute over half a billion dollars in quarter profit. It’s becoming one of the company’s most profitable businesses, and it’s growing fast.
16:32 CDT – Oh boy, that was a technical issue. Elon Musk is already speaking. He’s discussing Tesla’s progress with autonomy. He notes that he’s seeing significant promise with FSD Beta V12, which is an end-to-end solution. “We will continue to invest heavily in AI development,” Musk said.
16:30 CDT – It’s time! The Q3 2023 earnings call should be starting any minute now. The music’s stopped, so we’re just waiting for the actual call to begin.
16:29 CDT – And here’s the music! I wonder if Tesla will start on Elon time?
16:15 CDT – Hello, everyone, and welcome to our live blog of Tesla’s third-quarter earnings call! As expected, Tesla’s revenue and EPS took a hit in Q3, thanks in no small part to the company’s decrease in vehicle deliveries. Tesla was still profitable, though, so that pretty much proves that an EV business could consistently make money.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Elon Musk
Tesla board reveals reasoning for CEO Elon Musk’s new $1 trillion pay package
“Yes, you read that correctly: in 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions — to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award.”

Tesla’s Board of Directors has proposed a new pay package for company CEO Elon Musk that would result in $1 trillion in stock offerings if he is able to meet several lofty performance targets.
Musk, who has not been meaningfully compensated since 2017, completed his last pay package by delivering billions in shareholder value through a variety of performance-based “tranches,” which were met and resulted in the award of billions in stock.
Elon Musk’s new pay plan ties trillionaire status to Tesla’s $8.5 trillion valuation
However, Musk was unable to claim this award due to a ruling by the Delaware Chancery Court, which deemed the payout an “unfathomable sum.”
Now, the company is taking steps to ensure Musk gets paid, as the Board feels that it is crucial to retain its CEO, who has been responsible for much of the company’s success.
This is not a statement to undermine the work of all of Tesla’s terrific employees, but a ship needs to be captained by someone, and Musk has proven he is the right person for the job.
The Board also believes that, based on a statement made by the company in its proxy, various issues will be discussed during the upcoming Shareholder Meeting.
Robyn Denholm and Kathleen Wilson-Thompson recognized Musk’s contributions in a statement, which encouraged shareholders to vote to approve the payout:
“We’re asking you to approve the 2025 CEO Performance Award. In designing the new performance award, we explored numerous alternatives. Ultimately, the new award aims to build upon the success of the 2018 CEO Performance Award framework, which ensure that Elon was only paid for the performance delivered and incentivized to guide Tesla through a period of meteoric growth. The 2025 CEO Performance Award similarly challegnes Elon to again meet a series of even more aspirational goals, including operational milestones focused on reaching Adjusted EBITDA targets (thresholds that are up to 28 times higher than the 2108 CEO Performance Award’s top Adjusted EBITDA milestone) and rolling out new or expanded product offerings (including 1 million Robotaxis in commercial operation and delivery of 1 million AI Bots), all while growing the company’s market capitalization by trillions of dollars.
Yes, you read that correctly: in 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions — to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award.
In addition to these unprecedented performance milestones, the 2025 CEO Performance Award also includes innovative structural features, born out of the special committee’s considered analysis and extensive shareholder feedback. These features include supercharged retention (at least seven and a half years and up to 10 years to vest in the full award), structural protections to minimize stock price volatility due to administration of this award and, thereafter, incentives for Elon to participate in the Board’s continued development of a framework for long-term CEO Succession. If Elon achieves all the performance milestones under this principle-based 2025 CEO Performance Award, his leadership will propel Tesla to become the most valuable company in history.”
Musk will have a lot of things to accomplish to receive the 423,743,904 shares, which are divided into 12 tranches.
However, the Board feels he is the right person for the job, and they want him to remain the CEO. This package should ensure that he stays with Tesla, as long as shareholders feel the same way.
Investor's Corner
Elon Musk’s new pay plan ties trillionaire status to Tesla’s $8.5 trillion valuation
Shareholders are expected to vote on the proposal at the annual meeting on November 6.

Tesla’s board has proposed a new compensation package for CEO Elon Musk that could make him the world’s first trillionaire and Tesla the most valuable company in history.
The 2025 CEO Performance Award, outlined in a securities filing on Friday, would be worth up to $900 billion in Tesla stock (NASDAQ:TSLA) if the automaker achieves a series of aggressive performance and valuation goals, according to the New York Times.
Shareholders are expected to vote on the proposal at the annual meeting on November 6.
Tesla is aiming for an insane $8.5 trillion market cap
The package requires Musk to lift Tesla’s market capitalization from about $1.1 trillion today to $8.5 trillion over the next decade. At that level, Tesla would surpass every major public company in existence. Nvidia, currently the world’s most valuable firm, has a market cap of around $4.2 trillion today, as noted in a Motley Fool report. Microsoft and Apple follow at $3.8 and 3.6 trillion each, while Saudi Aramco is valued at around $1.5 trillion.
If Tesla achieves its $8.5 trillion target, it would be worth more than twice Nvidia’s present valuation and nearly eight times its current size. The compensation plan also requires Tesla’s operating profit to grow from $17 billion last year to $400 billion annually.

Elon Musk’s path to a trillionaire status
Apart from leading Tesla to become the world’s biggest company in history, Musk is also required to hit several product targets for the electric vehicle maker. These include the delivery of 20 million Tesla vehicles cumulatively, 10 million active FSD subscriptions, 1 million Tesla bots delivered, and 1 million Robotaxis in operation.
Tesla board chair Robyn Denholm and director Kathleen Wilson-Thompson said retaining Musk is “fundamental to Tesla achieving these goals and becoming the most valuable company in history.” If successful, the plan would raise Musk’s Tesla stake from 13% to about 25%, further consolidating his control. It would also result in the CEO earning $900 billion in TSLA stock, allowing him to effectvely become a trillionaire.
The proposal mirrors a 2018 compensation plan that was invalidated in Delaware court earlier this year in the way that it is focused on very aggressive targets and operational milestones. Tesla has since shifted its corporate registration to Texas, where challenges from potential activist shareholders are less of a risk.
Tesla’s SEC filing can be viewed below.
www-sec-gov-Archives-edgar-data-1318605-000110465925087598-tm252289-4_pre14a-htm… by Simon Alvarez
Investor's Corner
Shareholder group urges Nasdaq probe into Elon Musk’s Tesla 2025 CEO Interim Award
The SOC Investment Group represents pension funds tied to more than two million union members, many of whom hold shares in TSLA.

An investment group is urging Nasdaq to investigate Tesla (NASDAQ:TSLA) over its recent $29 billion equity award for CEO Elon Musk.
The SOC Investment Group, which represents pension funds tied to more than two million union members—many of whom hold shares in TSLA—sent a letter to the exchange citing “serious concerns” that the package sidestepped shareholder approval and violated compensation rules.
Concerns over Tesla’s 2025 CEO Interim Award
In its August 19 letter to Nasdaq enforcement chief Erik Wittman, SOC alleged that Tesla’s board improperly granted Musk a “2025 CEO Interim Award” under the company’s 2019 Equity Incentive Plan. That plan, the group noted, explicitly excluded Musk when it was approved by shareholders. SOC argued that the new equity grant effectively expanded the plan to cover Musk, a material change that should have required a shareholder vote under Nasdaq rules.
The $29 billion package was designed to replace Musk’s overturned $56 billion award from 2018, which the Delaware Chancery Court struck down, prompting Tesla to file an appeal to the Delaware Supreme Court. The interim award contains restrictions: Musk must remain in a leadership role until August 2027, and vested shares cannot be sold until 2030, as per a Yahoo Finance report.
Even so, critics such as SOC have argued that the plan does not have of performance targets, calling it a “fog-the-mirror” award. This means that “If you’re around and have enough breath left in you to fog the mirror, you get them,” stated Brian Dunn, the director of the Institute for Comprehension Studies at Cornell University.
SOC’s Tesla concerns beyond Elon Musk
SOC’s concerns extend beyond the mechanics of Musk’s pay. The group has long questioned the independence of Tesla’s board, opposing the reelection of directors such as Kimbal Musk and James Murdoch. It has also urged regulators to review Tesla’s governance practices, including past proposals to shrink the board.
SOC has also joined initiatives calling for Tesla to adopt comprehensive labor rights policies, including noninterference with worker organizing and compliance with global labor standards. The investment group has also been involved in webinars and resolutions highlighting the risks related to Tesla’s approach to unions, as well as labor issues across several countries.
Tesla has not yet publicly responded to SOC’s latest letter, nor to requests for comment.
The SOC’s letter can be viewed below.
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