Tesla Q3 Earnings: Record Revenue but Profit Pressures Weigh on Stock

Tesla's third-quarter results delivered a mixed picture for investors. While revenue surged to a record $28.01 billion, surpassing analyst expectations of $26.27 billion, earnings per share of $0.50 fell short of the $0.54 consensus. The electric vehicle maker's operating profit declined sharply by 40% to $1.624 billion, pressured by reduced regulatory credit sales and $400 million in tariff costs.

Vehicle deliveries reached 497,099 units, smashing estimates and setting a new company record as buyers rushed to claim expiring federal tax credits. CEO Elon Musk revealed ambitious plans to operate driverless Robotaxis in Austin by year-end, with testing expansion to 8-10 cities. The market responded negatively, with shares dropping 4% in Frankfurt and 3% in US pre-market trading following the earnings release.