Tesla’s record sales quarter barely boosted profits

Tesla delivered a record number of vehicles in the third quarter of 2025, thanks in large part to a rush of customers in the United States who took advantage of the expiring federal tax credit for electric vehicles. But this record quarter did not lead to increased profits. In fact, Tesla’s third-quarter profits were 37% lower than they were in 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 made a profit of just $1.4 billion, up just $200 million from the second quarter of this year, according to its shareholder letter. Released Wednesday.

The company explained in the letter that a significant increase in operating expenses – 50% higher compared to the third quarter of last year – was one of the reasons. This rise in OpEx is thanks to spending on artificial intelligence and other R&D projects, as well as “restructuring” charges of about $240 million. Tesla did not explain the reason for this restructuring charge, but it is likely related to the recent decision The company’s Dojo supercomputer project closed for six years.

This will put more pressure on the company’s last quarter.

Tesla really needs another record quarter (and some after that) if it wants to simply match the number of cars it shipped in 2024 or 2023. And the company could use some help from the new generation Stripped versions are a little cheaper From Model 3 and Model Y EVs. But even under this best-case scenario, Tesla is a long way from the 50% annual growth path it previously promised investors and shareholders.

All this is happening against the backdrop of Tesla A proposal to deliver shares worth a trillion dollars CEO Elon Musk. That plan is up for a vote at the company’s annual shareholders meeting in a few weeks. The company — and Musk — are campaigning hard. While advisory groups such as ISS and Glass Lewis recommend against approving the pay package, it is likely to pass given overwhelming support from shareholders for previous efforts.

That didn’t stop Musk from threatening to walk away from Tesla then The package was not approved.