Tesla’s net profit fell by 37% in the third quarter to reach $1.37 billion, due to rising operational expenses and tariff costs.
The company attributed the decrease to increased restructuring costs as well as higher spending on artificial intelligence projects and research and development. Regulatory credits also decreased, according to a statement.
On a per-share basis, excluding exceptional items—widely considered a key metric in financial markets—net earnings stood at 50 cents, down from 72 cents a year earlier.
This result fell short of analysts’ expectations compiled by FactSet, which had projected $1.88 billion in profit and 56 cents per share.
In after-hours trading following the closeure of the New York Stock Exchange, Tesla shares dropped by 1.63%.
However, gross earnings exceeded market forecasts of $26.54 billion, rising by 12% year-on-year to reach $28.09 billion.
The increase was bolstered by Tesla’s announcement in early October of a 7% year-on-year growth in global vehicle deliveries during the third quarter. Deliveries totalled 497,099 units, surpassing market expectations.
However analysts tempered enthusiasm around this performance, noting that the looming expiry of a $7,500 federal tax credit for electric vehicle purchases at the end of September had contributed to the surge in deliveries.
