Tesla Posts Higher Q3 Sales but Profit Slides on Costs and Tariffs

Overview

• Revenue rose 12% year over year to US$28.1 billion, while adjusted earnings per share came in at US$0.50 versus expectations of about US$0.54–0.55.
• Net income fell roughly 37% to US$1.37 billion as the operating margin narrowed to 5.8% and operating expenses jumped 50% to US$3.43 billion.
• Vehicle deliveries hit a record ~497,100 against production of ~447,400, lifted by U.S. buyers rushing to use a US$7,500 federal EV credit that expired on Sept. 30.
• Tesla cited higher tariffs, reduced regulatory‑credit revenue, restructuring costs, and increased R&D tied to AI and robotics as key profit headwinds; the CFO said tariffs topped US$400 million in the quarter.
• Shares slipped about 1% after hours and were down roughly 3% premarket on Thursday; cash rose to US$41.6 billion with US$3.99 billion in free cash flow, and the company warned of policy uncertainty as analysts project weaker 2025 deliveries.