in the world of Finance one company that always grabs the spotlight is Tesla the electric vehicle maker you've probably heard of its charismatic CEO Elon Musk who either has a big fan following or divides the investing World Tesla has been a game changer bringing Innovation to the car industry however recent hiccups in its delivery numbers have raised some concerns and investors are left wondering if the part's over or if there's a chance to buy low in the third quarter Tesla revealed its delivery and production figures they had hinted that things might be a bit slow due to factory upgrades but when the numbers came in they weren't quite up to the mark even though the expectations were modest Tesla fell short and that's when people started worrying the electric vehicle Market has become crowded with new players like rivan poar and Lucid in China where Tesla has a big presence it's facing tough competition from Neo and byd to stay competitive Tesla has been cutting prices which is squeezing its profits and and cash flow to be clear Tesla's financial situation doesn't look great expenses are rising faster than Revenue which is hurting its profit margins and free cash flow also the federal reserve's actions to control inflation like raising interest rates are affecting testers and markets as higher rates mean more expensive car and solar panel loans enan musk talked at length about why expenses are going up during testa's key3 earnings call a big part of it is their work on artificial intelligence Ai and self-driving technology which is essential for their future plans so research and development costs and capital expenditures will keep Rising because of these AI Ambitions now you might be wondering if there's any good news for Tesla well there is a glimmer of hope in the form of the long awaited Testa cyber truck they announced that they should start delivering it next month but here's the catch it might be a year to 18 months before it starts bringing in significant positive cash flow so costs will will keep going up but here's the thing Tesla didn't become what it is overnight they spent years and billions of dollars building factories all over the world and finding ways to reduce production costs and become consistently profitable while the payoffs from AI are still a bit down the road you can argue that Tesla is investing in growth and Innovation even during uncertain Economic Times they can afford their price cuts and still have money to fund their plans and let's not forget they're making big waves in the pickup truck Market so after reporting key3 earnings Tesla's stock took a hit down over 16% the delivery Miss and the prospect of rising costs didn't sit well with some investors but here's the interesting part even after the recent drop the stock is up over 70% in 2023 and from a price to- free cash flow perspective it's almost 30% lower than its earlier highs this year in the end it's a mixed bag for Tesla while its Financial picture might not look great on the surface a closer look reveals a different story challenges are ahead but Tesla stands out with its strong product vision from new cars to Ai and its solid financial position so this could be a golden opportunity to buy Tesla's stock at a discount
