Tesla's profits fall short of expectations despite record sales in the third quarter

Tesla, the American company, announced record revenues of $28.1 billion during the third quarter of 2025, surpassing analysts' expectations of $26.37 billion. The strong performance was driven by the highest quarterly sales in the company's history, with American buyers rushing to take advantage of tax incentives before they expired last month.

Profits disappoint the market

Despite the record revenues, profits came in below expectations, with the company reporting earnings per share of 50 cents against forecasts of 55 cents, leading to a 4% drop in Tesla's shares after the close.

Reasons for the decline: Costs and tariff burdens

The company attributed the drop in profits to rising costs of tariffs and research and development, as well as a decline in regulatory credit revenues following new legislation passed by President Donald Trump's administration. It also noted that operating expenses rose by about 50% driven by projects in artificial intelligence and robotics.

Uncertain future amid competition and demand

Tesla predicted a decline in demand for electric vehicles for the remainder of the year, with the expiration of tax incentives that had been a major driver of sales. The company did not issue any financial forecasts for the rest of 2025, merely confirming that it is focused on long-term growth and creating value for investors.

Massive valuation and hopes for technological transformation

Tesla's market capitalization is approximately $1.45 trillion, driven by investors' hopes for the company's transition into the robotics and artificial intelligence sectors, although car sales still represent the financial foundation of its stability.