Tesla’s record sales quarter barely boosted profit

In the third quarter of 2025, Tesla achieved a record vehicle delivery of 497,099 units, generating $21.2 billion in revenue—its highest in over a year—largely driven by U.S. customers rushing to benefit from an expiring federal EV tax credit. Despite this strong sales performance, Tesla's profit was only $1.4 billion, a modest increase of $200 million from the previous quarter but still 37% lower than the same quarter in 2024. The company attributed the subdued profit growth to a 50% rise in operating expenses compared to the prior year, fueled by increased spending on AI and R&D projects, as well as nearly $240 million in restructuring charges, possibly linked to the recent shutdown of its Dojo supercomputer initiative. Looking ahead, Tesla faces pressure to deliver another record-breaking quarter to match or exceed prior years' shipment volumes, with some potential support from new, more affordable versions of the Model 3 and Model Y.