Tesla Reports Record Revenue but Declining Profit, Stock Drops
Tesla has reported its highest-ever quarterly revenue, yet its net profit has decreased, causing a drop in its stock price. Analysts suggest that the stocks recent surge may have overly reflected expectations from new business ventures.
On October 22, Tesla announced that its revenue for the third quarter reached $28.095 billion (approximately 40.48 trillion KRW), marking an 11.6% increase compared to the same period last year. This figure exceeds market consensus, which was estimated at $26.37 billion. Within this revenue, the automotive sector generated $21.2 billion, a 6% increase from $20 billion in the third quarter of the previous year. The surge in demand can be attributed to the end of a tax credit of up to $7,500 per electric vehicle, which was in place during Donald Trumps first administration and expired on September 30. Teslas vehicle deliveries for the third quarter totaled 497,099 units, a 7% increase from the same period last year. The energy production and storage sector also showed robust performance, with revenue soaring 44% year-over-year to $3.42 billion (approximately 4.928 trillion KRW), making it the fastest-growing segment of Teslas business.
Despite the revenue increase, the companys profitability has taken a hit. Teslas net profit for the third quarter was $1.373 billion, a staggering 36.8% decline compared to the same period last year. Earnings per share (EPS) stood at $0.50, down from $0.72 a year earlier and falling short of market expectations of $0.54. Tesla attributed the decline in profitability to rising operational costs related to artificial intelligence (AI) and other research and development (R&D) projects, increased restructuring costs, reduced revenue from carbon credit sales, and tariff impacts. Following the earnings announcement, Teslas stock price fell by 0.97% during regular trading on the Nasdaq. In after-hours trading, the stock experienced an additional drop of about 3.8%, trading at $422.27.
Over the past six months, Teslas shares have surged approximately 75%, outpacing the Nasdaq indexs growth during the same period.
On October 22, Tesla announced that its revenue for the third quarter reached $28.095 billion (approximately 40.48 trillion KRW), marking an 11.6% increase compared to the same period last year. This figure exceeds market consensus, which was estimated at $26.37 billion. Within this revenue, the automotive sector generated $21.2 billion, a 6% increase from $20 billion in the third quarter of the previous year. The surge in demand can be attributed to the end of a tax credit of up to $7,500 per electric vehicle, which was in place during Donald Trumps first administration and expired on September 30. Teslas vehicle deliveries for the third quarter totaled 497,099 units, a 7% increase from the same period last year. The energy production and storage sector also showed robust performance, with revenue soaring 44% year-over-year to $3.42 billion (approximately 4.928 trillion KRW), making it the fastest-growing segment of Teslas business.
Despite the revenue increase, the companys profitability has taken a hit. Teslas net profit for the third quarter was $1.373 billion, a staggering 36.8% decline compared to the same period last year. Earnings per share (EPS) stood at $0.50, down from $0.72 a year earlier and falling short of market expectations of $0.54. Tesla attributed the decline in profitability to rising operational costs related to artificial intelligence (AI) and other research and development (R&D) projects, increased restructuring costs, reduced revenue from carbon credit sales, and tariff impacts. Following the earnings announcement, Teslas stock price fell by 0.97% during regular trading on the Nasdaq. In after-hours trading, the stock experienced an additional drop of about 3.8%, trading at $422.27.
Over the past six months, Teslas shares have surged approximately 75%, outpacing the Nasdaq indexs growth during the same period.
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