BusinessEnergy

Tesla Q3 Profits Decline Amid Record Revenue and Tax Credit Rush

Tesla’s third-quarter financial results reveal a significant profit decline of 37% despite achieving record revenue of $28 billion. The electric vehicle maker faced increased costs from tariffs and research investments while benefiting from a last-minute surge in buyers seeking expiring tax credits.

Financial Performance Overview

Tesla has reported a notable divergence in its third-quarter financial results, with profits declining significantly despite reaching record revenue levels, according to the company’s latest earnings report. The electric vehicle manufacturer saw revenue climb to $28 billion for the three months ending September, representing a 12% increase compared to the same period last year and setting a new quarterly record for the company.

BusinessInnovation

Tesla Q3 2025 Vehicle Deliveries Hit Record High But Profits Lag Amid Rising Costs

Tesla achieved record vehicle deliveries in Q3 2025, driven by U.S. federal EV tax credit expiration. However, profits declined significantly despite revenue growth, with operating expenses surging 50% year-over-year. The company faces pressure to maintain momentum amid CEO compensation debates.

Record Deliveries Fail to Boost Tesla’s Bottom Line

Tesla reportedly achieved its highest-ever vehicle delivery numbers during the third quarter of 2025, shipping 497,099 cars globally according to company reports. This surge was largely attributed to customers in the United States rushing to secure expiring federal electric vehicle tax credits. Despite this delivery milestone, sources indicate the company’s profitability continued to struggle, with third-quarter profit remaining 37% lower than the same period last year.

BusinessGovernance

Investment Strategist Criticizes Proxy Firms Over Tesla CEO Compensation Vote

ARK Invest CEO Cathie Wood has launched a strong critique against proxy advisory firms recommending shareholders reject Elon Musk’s proposed compensation package. The investment manager argues that index funds’ outsized voting power represents a “broken” system that threatens innovation at companies like Tesla.

High-Stakes Compensation Battle

Investment manager Cathie Wood has publicly criticized proxy advisory firms for their recommendations against Elon Musk’s proposed $1 trillion compensation package at Tesla, according to reports. In social media posts, Wood described the situation as “sad, if not damning” and questioned the influence these firms wield over shareholder voting processes.