Tesla Surpasses Revenue Expectations Amid Challenges

Tesla reported record third-quarter revenue beating Wall Street expectations due to strong EV sales, but profits missed forecasts partly because of tariffs and waning regulatory credits. The company faces challenges from expiring tax credits and competition, but remains invested in AI, robotics, and new vehicle models.

On Wednesday, Tesla announced it exceeded Wall Street projections with record third-quarter revenue, largely due to a surge in electric vehicle sales. However, the company's profits did not meet analyst expectations, impacted by tariffs, fading regulatory credits, and elevated research costs.

Despite the anticipation surrounding CEO Elon Musk's focus on robotics and AI, traditional vehicle sales continue to underpin Tesla's financial health. The removal of tax credits and rising tariffs added to the company's challenges, as outlined by CFO Vaibhav Taneja, who noted a $400 million quarterly impact.

Looking forward, Tesla is betting on new, cost-effective models to maintain volume, albeit at slimmer margins. With ambitious plans for AI, the Cybercab, and energy solutions by 2026, investors remain divided, but many believe in Musk's track record of overcoming obstacles.

(With inputs from agencies.)