Tesla posts record revenue but profit falls short
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Tesla delivered record quarterly revenue after its EV sales rebounded in the third quarter, but its profit fell short of expectations.
Why it matters: The automaker had been facing a sales backlash among consumers who were aggravated over CEO Elon Musk's support of President Trump and leadership of the Department of Government Efficiency.
Driving the news: Tesla posted third-quarter revenue of $28.1 billion, up 12% from a year earlier.
- That performance exceeded S&P Capital IQ estimates of $26.7 billion.
Yes, but: Earnings fell short of expectations for the period.
- The company recorded $1.37 billion in net income, trailing S&P Capital IQ estimates of $1.59 billion.
Zoom in: Tesla notched a third-quarter vehicle deliveries record of 497,099, up 7.4% from a year earlier.
- Sales surged as American car shoppers rushed to take advantage of a federal tax credit before it expired.
What we're watching: Tesla is gradually ramping up its nascent robotaxi business in Austin, Texas, and California's Bay Area.
- The company also said it plans to hit "volume production" of its Cybercab and Tesla Semi "starting in 2026.'
- And the company said "first generation production lines for Optimus" — its humanoid robot — are being installed in anticipation of volume production. Musk has said the initial Optimus units will be used at Tesla factories.
Market impact: Tesla shares were trading down nearly 2% early in extended trading Wednesday afternoon.
