Tesla’s Q3 profit dropped 37% to $1.4 billion from last year as the company slashed car prices and earned less from clean-air credits, which were down 44% to $417 million.
Revenue, however, rose 12% to $28.1 billion as Tesla sold more vehicles between July and September.
Lower prices and tariffs on imported materials squeezed margins, even as the company launched cheaper versions of its Model 3 and Model Y. Tesla declined to issue forecasts, citing global trade and policy uncertainty.
CEO Elon Musk remained upbeat, saying the company is close to launching a fully autonomous Cybercab by mid-2026 and expanding its self-driving Robotaxi fleet in Austin, Texas.
Despite weaker earnings, Tesla’s market value exceeds $1.4 trillion—over 20 times General Motors’ $64 billion.
Tesla’s US EV market share slipped to 41% from 48% in 2024, but energy storage sales jumped 44% to $3.4 billion.
Musk said Tesla’s Optimus robots could end poverty and revolutionize industries. He also addressed his proposed $1 trillion pay package, stating he is more interested in gaining Tesla shareholder control, as the plan would give him a 29% voting right.