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Tesla Profits Tumble as Tariffs Bite Into Earnings
Tesla's third-quarter profit fell 37% to $1.4 billion due to tariffs, higher expenses, and lower regulatory credit revenue despite 12% revenue growth.
- On Wednesday, Tesla reported $1.4 billion in third-quarter profit, saying tariffs and other expenses more than offset higher auto sales.
- Rising operating expenses reflected higher restructuring expenses and lower regulatory credits, with Tesla's operating expenses reaching $1.4 billion, the company said.
- Revenues rose to $28.1 billion amid stronger auto sales, US sales were boosted by the September 30 expiration of a federal $7,500 tax credit, and Tesla released two "standard" vehicles in early October.
- Investors reacted as Tesla shares fell in after-hours trading, and JPMorgan said a sustained sales increase likely depends on a new vehicle launch in the first quarter of 2026.
- An upcoming November 6 meeting will consider a compensation package for Elon Musk that could top $1 trillion, while Dan Ives, Wedbush analyst, said `We continue to strongly believe the most important chapter in Tesla's growth story is now beginning with the AI era now here`.
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Tesla reported record sales of $28 billion last quarter, up 12 percent from the same period last year. But its actual profit was significantly worse for that quarter, down 37 percent.
The end of the federal tax deduction prompted more American customers to buy an electric car from Tesla in the third quarter.
·Copenhagen, Denmark
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Total News Sources86
Leaning Left14Leaning Right16Center17Last UpdatedBias Distribution36% Center
Bias Distribution
- 36% of the sources are Center
36% Center
L 30%
C 36%
R 34%
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