Tesla’s stock is down 3% after the electric vehicle maker reported mixed financial results for this year’s third quarter.
The company run by Elon Musk announced earnings per share (EPS) of $0.50 U.S., which fell short of the $0.54 U.S. expected on Wall Street. The profit was down 37% from a year ago.
Revenue of $28.10 billion U.S. managed to beat analysts’ consensus estimate of $26.37 billion U.S. Sales were up 12% from a year earlier.
Tesla had reported year-over-year revenue declines in each of the previous two quarters.
Management blamed the profit decrease on lower electric vehicle prices and a 50% increase in operating expenses due to artificial intelligence (A.I.) and other new projects it is working on.
The third quarter also marked the expiration of federal tax credits in America for electric vehicles, which were eliminated with U.S. President Donald Trump’s spending bill.
The end of tax credits pulled Tesla vehicle sales forward in the U.S. during the quarter, leading to the better-than-expected revenue figure.
Management at Tesla acknowledged that consumers rushed to take advantage of the electric vehicle tax incentive before it disappeared.
However, Tesla continues to experience a noticeable sales slump in Europe, driven partly by consumer backlash against Elon Musk and his politics.
Through the first three quarters of this year, Tesla’s deliveries stood at 1.2 million, down about 6% from the same period of 2024.
Tesla didn’t provide detailed forward guidance with its latest financial results. However, Musk continued to talk about the humanoid robots and self-driving cars it is developing.
Management also teased a cheaper model of Tesla vehicle aimed at attracting price-conscious consumers.
Prior to today (Oct. 23), Tesla’s stock had risen 16% this year to trade at $438.97 U.S. per share.
