Tesla Q3 Profit Plunges 50% Amid Price Cuts, But Demand Seen as Higher Priority

Tesla's Q3 profit estimates have plunged nearly 50% amid price cuts, but stock has doubled. Tests strategy that demand matters more than margins.

Automotive gross margin seen dropping to 19% from 28% last year. Key metric to watch amid price cuts aimed to boost demand.

Deliveries missed estimates last quarter for first time in over a year, suggesting price cuts losing power.

Revenue still seen jumping 25% in 2024 with earnings up 37%, reflecting EV adoption expectations.

Update awaited on delayed Cybertruck deliveries. Bulls see margins recovering in Q4.