Tesla’s earnings tanked in its latest quarterly results, with the company making $690 million less than anticipated.

Tesla is the darling of the electric vehicle industry and leads the market in EV development. Despite its position, Elon Musk’s company is not immune to the overall market, as Tesla’s latest earnings prove.

According to The Guardian, Tesla reported $690 million less than expected in its Q3 2023 earnings report.

Jesse Cohen, Investing.com senior analyst, said the results demonstrate weak demand in the auto market, said it was unclear just how big of an issue it is.

“The big question is if this is just a blip, or signs of a bigger shift among consumers as rising interest rates and a weaker economic backdrop discourage consumers from making big-ticket purchases,” he said.

Musk was also quick to “temper expectations” surrounding the Cybertruck. While the company is preparing to begin its first deliveries by the end of November, Musk said there would be a long road to achieve profitability and adequate production levels.

“It is going to require immense work to reach production and be cashflow positive at a price that people can afford,” he said.