Tesla's Record Revenue Despite EV Tax Credit Expiry: A Strategic Shift

Tesla reported record third-quarter revenue, outperforming estimates with $28.1 billion, boosted by a rush for EVs before a U.S. tax credit expired. Despite the revenue surge, profit per share fell short of expectations. Tesla's strategic shift toward self-driving tech marks a pivot as it introduced lower-cost variants of its vehicles.

Tesla has announced a record third-quarter revenue, surpassing Wall Street estimates with a total of $28.1 billion. The surge in revenue is attributed to a significant increase in electric vehicle sales as consumers rushed to capitalize on a U.S. tax credit before its expiration last month.

However, despite the impressive revenue figures, the electric vehicle giant reported lower-than-expected profit per share at 50 cents, missing analysts' estimates of 55 cents. Tesla's strategic focus is shifting toward self-driving technology, evident from the limited rollout of its "robotaxi" service, which aims to transform its business model.

Amid this transition, Tesla introduced lower-cost "Standard" variants of its Model Y and Model 3 vehicles. Although this move is designed to boost volume growth post-tax credit, analysts express concern over potential margin pressure. The anticipated reduction in regulatory credit revenue poses additional challenges as Tesla navigates an increasingly competitive market landscape.

(With inputs from agencies.)