Tesla profit plunges 37% despite sales rise
Tesla earnings fell 37 percent to $1.4 billion for the July through September period as tariffs and restructuring costs dragged down results despite stronger vehicle deliveries. Revenue climbed 12 percent to $28.1 billion while operating expenses surged 50 percent to $3.4 billion because of expanded research and development spending. The electric carmaker warned of short-term challenges from changing trade policies but said investments in transportation, energy, and robotics would yield substantial returns in the future.
American electric vehicle purchases increased before the federal tax credit expired on Sept. 30, prompting buyers to accelerate transactions. Tesla launched two standard models at reduced prices in early October, though analysts questioned whether the releases would sustain demand growth. JPMorgan projected the company needs fresh vehicle offerings by early 2026 to achieve lasting sales expansion.
Wedbush analyst Dan Ives said autonomous technology developments could add $1 trillion to Tesla’s market value. Shareholders meet on Nov. 6 to vote on a compensation plan for Chief Executive Elon Musk that exceeds $1 trillion if performance targets are reached. Stock prices recovered after Musk departed his White House role in May, but slipped 1.5 percent on Wednesday following the earnings announcement.
