Tesla said its profit sank in the third quarter after it cut car prices to lift sales. Photograph: Mikayla Whitmore/The New York Times
Tesla said its profit fell more than a quarter as increased costs from US tariffs, the loss of emissions credit revenue and the vast expense of its pivot to robotics and artificial intelligence ate into its margins.
Elon Musk’s electric-car maker on Wednesday reported its third-quarter adjusted net income fell 29 per cent year-on-year to $1.8 billion (€1.55 billion), missing expectations of $1.9 billion.
Investors had hoped for a boost from record vehicle sales in the quarter, as consumers rushed to make purchases before the US ended a green vehicle incentive. But extra costs, including spending on AI talent, eroded Tesla’s profits.
Revenue surpassed analysts’ estimates of $26.6 billion compiled by Visible Alpha,
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