Tesla has pulled off its biggest sales quarter in history and still managed to make less money.
The electric car giant reported a staggering $28.1 billion in revenue for the third quarter, its biggest quarter yet, well above Wall Street’s expectations.
However, However, Tesla disclosed that its operating income dropped by about 40 per cent year-on-year, despite the revenue rise.
Tesla’s earnings per share came in at US $0.50, missing analyst forecasts, and net income fell to US $1.4 billion, down from US $2.2 billion a year ago.
A major driver of the revenue surge is Americans rushing to snap up Teslas before a key Federal EV tax credit expired.
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Tesla reported production of approximately 447,450 vehicles and deliveries of roughly 497,450 units for the quarter.
But analysts warn this could be a one-off, not reflective of demand.
Analysts warn Tesla’s margins are shrinking fast.
Price cuts across its Model 3 and Model Y range, along with new stripped-back “Standard” variants, have boosted volume but cut profits.
The company’s once lucrative regulatory credits sales are also drying up as more brands launch their own electric vehicles.
On Wednesday, Tesla announced its continued efforts to “evolve and augment” its product range.
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Tesla said the focus remains on “cost, scale, and future monetisation opportunities through services powered by our AI software.”
Musk insists the future is bright, promising that half of America will have access to Tesla’s self-driving Robotaxis by the end of next year.
Tesla said that its Cybercab, Tesla Semi, and Megapack 3 will enter volume production in 2026.
Additionally, the company is currently installing the initial production lines for the Optimus humanoid robot, with volume production expected soon.
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