Tesla’s record sales quarter barely boosted profit

Tesla delivered a record number of vehicles in the third quarter of 2025, thanks to a rush of US customers who took advantage of expiring federal EV tax credits. But that record quarter didn’t lead to bigger earnings. In fact, Tesla’s third-quarter profit was still down 37% from the same quarter last year.

Tesla shipped 497,099 vehicles in the third quarter, generating $21.2 billion in revenue — the company’s best revenue figure in more than a year. But Tesla only made a profit of $1.4 billion, up just $200 million from this year’s second quarter, according to the letter to shareholders. release on wednesday

The company explained in the letter that a big increase in operating expenses — up 50% from last year’s third quarter — was one of the culprits. That OpEx bump was thanks to spending on AI and other R&D projects, as well as “restructuring” charges of about $240 million. Tesla did not explain what these restructuring charges were for, but it is likely related to the recent decision The company’s six-year Dojo supercomputer project is closed.

This will put more pressure on the company’s year-end quarter.

Tesla needs another record quarter (and then some) with the number of cars shipped in 2024 or 2023. The company may get some help from newbies Slightly-cheaper stripped-down version Model 3 and Model Y EVs. But even in that best-case scenario, Tesla is off track for the 50% year-over-year growth it once promised investors and shareholders.

All this is happening in the background of Tesla $1 trillion worth of stock transfer proposals To CEO Elon Musk. The plan is up for a vote at the company’s annual shareholder meeting in a few weeks. The company — and Musk — are campaigning hard. Although advisory groups such as ISS and Glass Lewis are recommending against the pay package, it is likely to pass due to overwhelming shareholder support in previous attempts.

That hasn’t stopped Musk from threatening to walk away from Tesla Package is not allowed.