Tesla Shatters Revenue Expectations Amid Tax Credit Rush

Tesla reported record third-quarter revenue, fueled by strong electric vehicle sales as buyers hurried to secure a soon-to-expire U.S. tax credit. Despite not meeting profit expectations, Tesla's future strategies focus on self-driving technology and lower-cost vehicle variants. Revenue from regulatory credits is expected to decline significantly.

Tesla surpassed Wall Street predictions for third-quarter revenue, driven by record electric vehicle sales as customers raced to benefit from a key U.S. tax credit before its expiration. In a shareholder update, Tesla emphasized its commitment to long-term growth despite uncertainties in trade, tariff, and fiscal policies.

The company reported $28.1 billion in revenue for the quarter ended September 30, exceeding analysts' estimates. However, the profit per share fell short of expectations. While Tesla's gross margin matched expectations, its new 'robotaxi' service marks a strategic shift towards self-driving technology.

Tesla also introduced lower-cost variants of its popular models to boost sales volume after the tax credit's expiration. Analysts caution that while this may increase vehicle sales, it could pressure profit margins. Revenue from regulatory credits, a significant income source, is anticipated to drop due to policy changes.

(With inputs from agencies.)