Tesla profit misses as Trump tariffs bite
Tesla stock dropped 3 percent in premarket trading on Thursday after the electric vehicle manufacturer reported quarterly earnings below Wall Street expectations. Rising expenses and diminishing regulatory credits pressured results despite the company achieving record sales volumes. The automaker faced over 400 million dollars in additional costs from tariffs imposed by President Donald Trump on auto parts, Chief Financial Officer Vaibhav Taneja said.
The company has missed profit forecasts for four straight quarters as industry-wide cost pressures mount. Tesla shares have gained nearly 9 percent this year but remain among the weakest performers in the Magnificent 7 group of technology giants. The stock plunged as much as 39 percent through March amid weak demand and political controversy surrounding CEO Elon Musk’s relationship with the Trump administration.
Tesla beat third-quarter revenue estimates on record electric vehicle sales as American buyers rushed to claim expiring tax incentives. The company launched cheaper Standard versions of its Model Y and Model 3 vehicles earlier this month with price cuts reaching 5,500 dollars to offset softening demand. Analysts said an upcoming shareholder vote on Musk’s compensation package could prove critical to keeping him as chief executive.
