Tesla (TSLA) reported mixed third-quarter results, showing stronger revenue but weaker profitability as the EV maker navigates higher tariffs and the end of U.S. EV tax credits.
The company posted $28.01 billion in revenue, up 12% year-over-year and above Wall Street’s $26.27 billion estimate. Adjusted earnings per share came in at $0.50, missing forecasts of $0.54. Operating profit plunged about 40% to $1.62 billion, while regulatory-credit income dropped sharply.
Despite the margin squeeze, Tesla delivered a record 497,099 vehicles in Q3 and deployed 12.5 GWh of energy-storage products both company highs.
Robotaxi Expansion on the Horizon
During the earnings call, CEO Elon Musk confirmed Tesla is preparing to expand Robotaxi testing to as many as 8–10 U.S. metro areas, including Austin, Nevada, Florida, and Arizona, by the end of 2025. He said Tesla expects to remove safety drivers in parts of Austin before year-end, calling the deployment “cautious but confident.”
Analysts say Robotaxi rollout could be Tesla’s next trillion-dollar opportunity, though some warn the company must balance its AI push with core vehicle-sales growth.
Shares Slide as Investors React
Tesla stock slipped around 3% in pre-market trading Thursday following the report, as traders weighed the mixed results and Musk’s ambitious Robotaxi timeline.
The automaker warned that the expiration of federal EV tax credits could soften demand in coming quarters, though newly launched lower-cost Model 3 and Model Y variants may help sustain volume.
Bottom Line
Tesla’s Q3 showed strong sales momentum but shrinking profits. As Musk bets big on autonomy and AI, investors are watching whether Tesla can turn its Robotaxi vision into the company’s next growth engine.