Thu, 23 Oct 2025

Thu, 23 Oct 2025 Tesla profits slide despite record revenue

Elon Musk's electric car maker reported record revenue as US buyers rushed to secure a key tax credit.

* Tesla's revenue hit a record $28bn (up 12% from last year) but profits dropped by 37%
* Extra costs linked to tariffs and research were partly responsible for the decline in profits
* Sales of electric cars surged due to US buyers rushing to secure federal tax credits before they expired on September 30th
* Tesla is still heavily reliant on vehicle sales, with new products such as AI and robotics yet to contribute significantly to revenue
* The company faces stiff competition from Chinese rivals like BYD
* Tariffs imposed by the Trump administration cost Tesla over $400m in the last quarter
* Higher research and development expenses, particularly for AI initiatives, also weighed on profits
* Tesla unveiled cheaper models of two popular cars in October, but shares fell as investors were underwhelmed
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