Tesla's revenues rebound as consumers race to claim expiring tax credit

"Tesla said it earned $1.4 billion in net income on $28.1 billion in revenue in the quarter that ended in September. That's 12 percent increase in revenue but a 37 percent decrease in profits over the third quarter of 2024, when the company earned $2.2 billion in net income on $25.2 billion in revenue. Tesla's revenue came in above Wall Street expectations of $26.24 billion, according to data compiled by LSEG."

"Tesla was widely expected to have a relatively good quarter as a result of the expiration of the $7,500 federal EV tax credit on September 30th. The company sold a record number of EVs in the third quarter, delivering a total of 497,099 vehicles, a 7.4 percent increase compared to the third quarter of 2024. Tesla also sold around 50,000 more vehicles than it produced, helping reduce the extra inventory that's been building up for the first half of the year."

"But this is likely to be a rare positive quarter in an otherwise dour year for Tesla. The company reported its first year-over-year sales drop in 2024 and is expected to do the same at the end of this year, with analysts predicting an 8.5 percent decline. In addition to an aging lineup of vehicles, Tesla is also facing stiffer competition in all major markets than it ever has before."

Tesla reported $1.4 billion in net income on $28.1 billion in revenue for Q3, a 12 percent revenue increase but a 37 percent profit decline year-over-year. Deliveries reached a record 497,099 vehicles, up 7.4 percent, with about 50,000 more cars sold than produced, which reduced excess inventory. Revenue surpassed Wall Street expectations and benefited from buyers rushing to claim the $7,500 federal EV tax credit before it expired on September 30. Despite the quarter's strength, analysts predict annual sales declines amid an aging lineup, tougher competition, and political backlash affecting customer demand.

Read at The Verge