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Tesla Sets Sales Record as Profit Falls; Musk’s $1 Trillion Pay Plan Draws Fire

A tariff-driven profit drop sets the stage for a November 6 shareholder decision on Elon Musk’s proposed equity award.

Overview

  • Tesla reported Q3 revenue of about $28.1 billion, net income of $1.37 billion down 37% year over year, and roughly 497,000 deliveries.
  • Management cited more than $400 million in tariff costs and higher AI and operating expenses as key drivers of margin pressure.
  • The U.S. tax credit cutoff spurred a rush of purchases that lifted Q3 results, and analysts warn volumes could ease in Q4 as the pull‑forward fades.
  • Elon Musk emphasized a pivot to autonomy, robotaxis and humanoid robots, saying the robotaxi service could reach 8–10 U.S. cities by year‑end and reduce safety drivers in Austin.
  • Proxy advisers ISS and Glass Lewis urged investors to reject the proposed Musk pay package, and the stock fell several percent after the results and his remarks.