On October 23rd local time, the US stock market opened low and closed low. The Nasdaq fell by over 1% at one point, but then quickly rebounded. As of press release, the Dow fell 0.19%, the Nasdaq fell 0.26%, and the S&P 500 index fell 0.19%.
It is worth noting that Tesla suffered a significant decline after opening, dropping nearly 5% to $202.51 per share, with its total market value shrinking to around $642.8 billion. This is already Tesla's fourth consecutive trading day of significant decline, with a market value of 166 billion US dollars (approximately 1214.2 billion RMB) evaporated compared to its closing on October 17th.

Disclosure of Zhu Xiaotong's 10b5-1 stock trading arrangement or sale of up to 30000 shares
According to Interface News, Tesla disclosed in its FORM 10-Q file submitted to the Securities and Exchange Commission (SEC) on the 23rd that on September 17, 2023, Zhu Xiaotong, Senior Vice President of the Automotive Business, adopted a trading arrangement under Rule 10b5-1, which involves the potential sale of up to 30000 ordinary shares, subject to certain conditions being met. The expiration date of this transaction arrangement is July 2, 2024.
It is understood that executives of US listed companies generally avoid insider trading allegations through a program called the "10b5-1 Trading Plan". This program allows internal personnel to pre arrange to buy and sell a predetermined amount of our company's stock at a predetermined time. Trading does not need to be cancelled when they receive certain undisclosed information, provided that they do not change their plan when they have important non-public information.
Financial report falls short of expectations or continues to lower prices
On October 18th local time, Tesla released its financial report for the third quarter of 2023. Data shows that Tesla's revenue in the third quarter was 23.4 billion US dollars, a year-on-year increase of 9%, slightly lower than market expectations of 24.06 billion US dollars; Adjusted earnings per share were $0.66, a year-on-year decrease of 37%, and the market expectation was $0.74; The net profit under the GAAP (non US GAAP) standard was $1.853 billion, a year-on-year decrease of 44%; The gross profit margin is 17.9%, declining for three consecutive quarters, with market expectations of 18% compared to 25.1% in the same period last year.
Tesla explained that the decline in profits was mainly due to insufficient utilization of new factories, increased operating expenses due to the upcoming electric pickup truck Cybertruck, and expenses for artificial intelligence and other projects.
Tesla founder and CEO Elon Musk revealed on the earnings call that Tesla is currently not ready to fully open its Mexican factory. Tesla will begin construction of its Mexican factory in 2024; If interest rates decline, Tesla will accelerate factory expansion. In addition, Tesla disclosed in its financial report that its Texas factory in the United States has started trial production of Cyberrack, which will be delivered in November. Musk stated that the order volume has exceeded 1 million vehicles. Regarding the price fluctuations of Tesla that people are concerned about, Musk proposed to make Tesla more affordable. He said, "The importance of cost cannot be overemphasized... We must make our products more affordable so that people can afford them