Tesla profit falls short despite record sales


Wider operations: A Tesla robotaxi drives on the street along South Congress Avenue in Austin, Texas. Musk forecasts “nutty” demand for the self-driving Cybercab and says margins would not be sacrificed. — Reuters

SAN FRANCISCO: Tesla reported record third-quarter (3Q) revenue that beat Wall Street estimates on Wednesday, driven by the highest quarterly sales of its electric vehicles (EVs) as US buyers rushed to lock in a key tax credit ahead of its expiry last month.

However, Tesla’s profit failed to live up to analysts’ expectations, in part due to tariff and research costs, as well as a drop in income from regulatory credits that are expected to continue to fade away with recent legislation passed by the Trump administration.

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