Tesla (TSLA) Q3 2025 earnings report

Tesla’s reported a 12% increase in third-quarter revenue on Wednesday after two consecutive periods of decline. But earnings missed analysts’ estimates, sending the stock down nearly 1% in extended trading.

Here is the company’s performance compared to the forecasts of analysts participating in the LSEG survey:

• Earnings per share: Estimated 54 cents versus 50 cents adjusted
• Revenues: $28.10 billion versus $26.37 billion estimated

Total revenue increased from $25.18 billion in the previous year. Tesla said its automotive revenue rose 6% to $21.2 billion, from $20 billion in the same period last year.

Net income fell 37% to $1.37 billion, or 39 cents per share, from $2.17 billion, or 62 cents per share, the year before. The profit decline reflected lower electric vehicle prices and a 50% increase in operating expenses; The company said this was partly due to artificial intelligence and “other R&D projects.”

The end of the quarter coincided with the expiration of federal tax credits for electric vehicles that were eliminated by President Donald Trump’s spending bill. This pushed sales into the quarter as consumers rushed to take advantage of the incentive before it ended.

In Tesla’s last earnings call in July, CEO Elon Musk and finance chief Vaibhav Taneja warned shareholders about the impact of higher tariff costs and the end of tax credits.

Revenue from automotive regulatory loans fell 44% from $739 million to $417 million in the quarter.

Despite a return to overall growth, Tesla’s third quarter was marked by a continued sales decline in Europe, due in part to consumer backlash against Musk, his incendiary political rhetoric and activism, as well as competition from electric vehicle makers such as Volkswagen and BYD.

After falling sharply to start the year, the stock rebounded and gained almost 9% in 2025. This still lags most of the major indices and megacap peers.

Analysts are waiting to hear what the company plans for demand. Tesla didn’t give volume-specific guidance in its shareholder deck, but still said it aims to begin “mass production” of Cybercab, heavy-duty electric Semi trucks, and a new battery energy storage system called Megapack 3 in 2026.

Tesla said it is currently building “first-generation production lines” for the company’s humanoid Optimus robots. Tesla introduced the all-electric Semi in November 2017. Although the company has delivered some of these trucks to its first customers, Semi still lists its production lines as “under construction.”

Instead of pledging to deliver a specific number of electric vehicles and energy products by the end of the year, Tesla said: “It is difficult to quantify the impacts of changing global trade and financial policies on automotive and energy supply chains, our cost structure, and our demand for durable goods and related services.”

Earlier this month, Tesla reported that it delivered 497,099 vehicles in the third quarter; this is a record compared to the total production of 447,450 vehicles. However, deliveries in the first three quarters amounted to around 1.2 million, a decrease of approximately 6% compared to the same period in 2024.

Tesla also launched more affordable versions of its popular Model Y SUV and Model 3 sedan in early October. The new offerings “make our products more accessible to customers following the expiration of the EV tax credit in the US,” the company said in a statement Wednesday.

Tesla executives will hold a call with analysts at 5:30 PM ET.

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