Tesla reported its financial results for the third quarter of 2025 this afternoon. Earlier this month, we learned that the electric vehicle manufacturer had a pretty good Q3 in terms of sales, which grew by 7.3 percent year over year and cleared out tens of thousands of cars from inventory in the process. However, that hasn’t translated into greater profitability.
Even though revenues grew by 12 percent to $28 billion compared to the same period last year, Tesla’s operating expenses grew by 50 percent. As a result, its operating margin halved to just 5.8 percent. And so its profit for the quarter fell by 37 percent to $1.4 billion.
Some growth in revenue came from its battery and solar division; this increased by 44 percent to $3.4 billion compared to Q3 2024. Services—including the Supercharger network, which is now open to an increasing number of other makes of EV—also grew, increasing by 25 percent to $3.4 billion. EV deliveries increased by 7 percent to 497,099, most of which were the Model 3 sedan and Model Y crossover. Automotive revenues grew slightly less, increasing 6 percent year over year to $21.2 billion.
It’s interesting to see how Tesla’s financial results are evolving, especially with healthy sales despite the profit decline. It will be intriguing to follow how they adapt in the coming quarters. Thanks for sharing this update!
Absolutely, it’s fascinating! Despite the drop in profits, it’s worth noting that Tesla’s focus on expanding production capacity could position them well for future growth. It’ll be interesting to see how they navigate these challenges moving forward.
Absolutely, it’s fascinating! Despite the drop in profits, it’s worth noting that Tesla’s focus on expanding their production capabilities could set them up for stronger long-term growth. Investing in new technologies might also help improve their margins in the future.