US electric vehicle manufacturer Tesla has released its update report for Q3 2023, with top-line revenue falling just short of analyst estimates.

Tesla’s revenue for the third quarter was $23.4 billion – $710 million below Wall Street’s expectations. Kallanish notes this still represents a 9% increase year-on-year, which the company attributed to increased vehicle deliveries and other business growth.

Meanwhile, pilot production of the Cybertruck has begun at Tesla’s gigafactory near Austin, Texas. The company confirmed that it is on-track to begin initial Cybertruck deliveries in late November, but did not say how many units would be moved.

On a conference call discussing the results, Tesla ceo Elon Musk said it could take up to 18 months before the battery-electric vehicle is cash-flow positive.

Musk also noted the company will face “enormous challenges” in reaching volume production on the model, though he anticipates reaching a production rate of 250,000 units/year by 2025.

The report also noted that Cybertruck battery cells, which yield 10% higher energy than Tesla’s “4680” cells, are currently being produced at Giga Texas. Production on the 4680 battery cells was up 40% quarter-on-quarter at the factory, while scrap was down 40% in the same timeframe.

The company also plans to continue building capacity for US lithium refining and cathode production.

Tesla is still “laying the groundwork to begin construction” on a gigafactory in Mexico, but Musk said the company is wary of the global economy and high interest rates. A more detailed timeframe was not provided, though Musk confirmed the company is “definitely making the factory.”