Tesla sold a record number of cars in Q3 2025, but still saw profits drop by 37% year-on-year as high spending, tariffs, and an end to US subsidies hit its margins.
US consumers raced to buy EVs before tax credits ended on Sept. 30, meaning Tesla sold an unprecedented 497,099 units worldwide. But the trade war has made vital components more expensive, and changes to US law mean Tesla can no longer sell emissions credits to more polluting rivals.
The company has also spent heavily on recruiting AI talent to boost its self-driving and robotics ambitions. Tesla stocks fell 3.5% on the news, which comes as CEO Elon Musk pushes for a new $1 trillion share package.
