After Tesla officials announced a steep drop in profits, the company’s stock price quickly dropped, continuing the electric automaker’s bumpy year.
During the company’s third-quarter results call on Oct. 23, Tesla reported $1.4 billion in profits, a 37% decrease over the same period in 2024.
The company also announced $28.09 billion in revenues during the quarter. As Forbes notes, that was nearly a 25% jump over the second quarter, surpassing Wall Street’s estimates but falling short of analyst projections.
After that call, Tesla shares fell by 5% to around $416. The price did rebound, however, and within a few days had regained those losses.
These losses came despite Tesla producing and delivering a record number of electric vehicles during the third quarter. As many U.S. customers raced to buy a new vehicle before the federal EV tax credit expired at the end of September, Tesla delivered nearly half a million cars worldwide.
But those record deliveries still didn’t result in a quarter that could match previous years’ financial results or analyst expectations. And that continues a year that has seen overall sales and revenues drop substantially for the EV pioneer.
It’s also unclear how much Tesla will focus on producing consumer EVs moving forward.
Forbes reported that many shareholders on Tesla’s earnings call asked for updates on new EV models and how the company would adapt after the tax credit’s expiration. Instead, CEO Elon Musk mainly spoke about Optimus, the company’s humanoid robot, saying it had the “potential to be the biggest product of all time.”
Musk also took time to blast several analysts who slammed his new pay package — which could pay him $1 trillion if Tesla hits several lofty goals — calling them “corporate terrorists”.
Although Tesla’s future with EVs remains uncertain, yours doesn’t have to be.
Switching to an EV is one of the more impactful moves any driver can make to help protect our planet. Not only are EVs free of tailpipe emissions and much cleaner than their gas-powered counterparts, but they are also less expensive to drive each year.
And although the federal EV tax credit has expired, many automakers are still offering incentives that can save thousands of dollars.
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