Tesla's Turbulent Quarter: Navigating Through Challenges and Innovations

Tesla's third-quarter revenue surpassed Wall Street expectations, fueled by increased EV sales ahead of a tax credit expiry. However, its profit margins fell short due to rising tariffs and reduced income from regulatory credits. The company remains optimistic about future growth despite facing challenges such as heightened competition and political controversies.

Tesla has announced record revenue for the third quarter, surpassing Wall Street's expectations. This surge is attributed primarily to increased electric vehicle sales as U.S. consumers rushed to take advantage of a soon-to-expire tax credit.

Despite this revenue growth, Tesla's profit did not meet analysts' projections, partly due to the company's increased tariff and research expenses, as well as a significant decrease in income from regulatory credits.

The automotive giant's shares experienced a slight decline in after-hours trading. Tesla is now focusing on affordability and expanding its product line, unveiling lower-cost versions of its Model Y and Model 3 vehicles to address potential demand declines.

(With inputs from agencies.)