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Tesla Q3 revenue surges 28% to $28.1 billion, but profits slip amid $400 million tariff hit
Tesla bets on cheaper models and future AI, robotaxi, and energy ventures to offset near-term margin pressures.
Tesla’s profit fell short of expectations, dented by new tariffs, soaring research and development spending, and a sharp decline in income from regulatory credits.
Tesla has reported record third-quarter revenue that surpassed Wall Street estimates, powered by its highest-ever vehicle sales as U.S. buyers rushed to secure federal electric vehicle (EV) tax credits before they expired last month.
The company posted $28.1 billion in revenue for the quarter ended September 30, beating analysts’ average forecast of $26.37 billion, according to data from LSEG, Reuters quoted.
However, Tesla’s profit fell short of expectations, dented by new tariffs, soaring research and development spending, and a sharp decline in income from regulatory credits.
Chief Financial Officer Vaibhav Taneja reportedly said that tariffs imposed under the Trump administration added more than $400 million in costs during the quarter. Meanwhile, the company saw a 50% jump in operating expenses, driven by investments in AI, robotics, and other R&D initiatives, along with higher stock-based compensation. Taneja added that capital expenditures are expected to rise substantially in 2026 as Tesla accelerates work on future products.
Tesla’s $1.45 trillion valuation continues to hinge on investor optimism around CEO Elon Musk’s pivot to AI and robotics, but traditional vehicle sales remain the company’s financial backbone while those long-term bets are developed.
Tesla has launched lower-cost “Standard” variants of its Model Y and Model 3 earlier this month, cutting prices by about $5,000 to $5,500. Despite near-term headwinds, Tesla said it remains on track to begin volume production of its Cybercab robotaxi, Semi truck, and Megapack 3 battery in 2026. Meanwhile, progress on the Optimus humanoid robot continues, with production expected to begin toward the end of 2026.
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From purpose-driven work and narrative-rich brand films to AI-enabled ideas and creator-led collaborations, the awards reflect the full spectrum of modern creativity.
Read MoreDiageo India CEO Praveen Someshwar joins Grand Jury of Storyboard18 Awards for Creativity
Praveen Someshwar, Managing Director and CEO of Diageo India, joins the Grand Jury of the Storyboard18 Awards for Creativity, highlighting the awards’ focus on work that blends cultural relevance with strategic and commercial impact.