Catenaa, Thursday, October 23, 2025- Tesla reported mixed third-quarter results, sending its stock down as it enters a post-EV tax credit environment, with investors eyeing progress on the Robotaxi.
Tesla reported Q3 revenue of $28.01 billion, versus the expected $26.27 billion, according to Bloomberg, a 12% increase from the $25.18 billion reported a year ago.
It also posted adjusted earnings per share of $0.50 vs $0.54 estimated, translating to EBITDA of $4.23 billion vs $3.78 billion expected. Operating profit fell 40% to $1.624 billion from a year ago.
Tesla also said lower regulatory emissions credit revenue weighed on profitability.
Tesla stock was down by over 4.5% on Thursday morning; the stock is up by just 3.6% so far this year.
“We are expecting to have no safety drivers in large parts of Austin by the end of this year … We are being very cautious about the deployment,” Musk said on the earnings conference call following the report. Musk added that Tesla aims to launch Robotaxi tests in 8 to 10 metro areas by the end of the year, including Nevada, Florida, and Arizona.
Tesla’s Q3 earnings report comes with the S&P 500 and Nasdaq within striking distance of new highs.
The broader market has shaken off President Trump’s unpredictable tariff war, though fears of an economic slowdown in the US persist. Plus, auto sector tariffs of 25% on imported cars and parts are still in place, hurting domestic automakers.
Tesla noted on the conference call that its tariff hit in Q3 rose to $400 million; the company posted a $300 million tariff hit in Q2.
“It is difficult to measure the impacts of shifting global trade and fiscal policies on the automotive and energy supply chains, our cost structure and demand for durable goods and related services,” the company said in its earnings release.
