Tesla Profits Plunge Despite Record Revenue and Deliveries
Tesla has reported significant achievements for the third quarter of 2025, which include record vehicle deliveries and revenue. However, the company’s profits experienced a notable decline.
Tesla’s Record Deliveries and Revenue
During Q3 2025, Tesla delivered a remarkable total of 497,099 vehicles worldwide. This achievement marks the company’s highest delivery figure to date. Tesla’s revenue reached $28.1 billion, reflecting a 12% increase compared to the same quarter last year.
Profit Decline Despite Success
Despite these records, Tesla’s net income fell by 37% year-over-year. A combination of factors contributed to this downturn, including:
- Reduction in electric vehicle prices
- Increased expenditure on artificial intelligence and research projects
- High tariffs on imported parts and raw materials
Vaibhav Taneja, Tesla’s finance chief, disclosed that tariffs alone cost the company over $400 million in Q3. His outlook suggests that R&D spending will continue to rise in the coming quarters.
Future Innovations: Driverless Robotaxis
CEO Elon Musk shared updates on Tesla’s ambitious plans for robotaxis. He anticipates the launch of fully autonomous vehicles in parts of Austin by year’s end. Tesla started its robotaxi rides in Austin, Texas, in June 2025.
Challenges in Deployment
Although the rollout has begun, there have been multiple reports of issues, including incidents involving parked cars. Musk emphasized that Tesla is proceeding with caution and aims to introduce driverless vehicles in eight to ten additional states before the end of 2025.
Advancements in AI Technology
In a significant development, Musk announced the production of Tesla’s AI5 chip, which will be manufactured by both Samsung in Texas and TSMC in Arizona. The company plans to produce more chips than needed for its electric vehicles and Optimus robots, utilizing surplus for its data centers.
While Tesla will continue to use NVIDIA chips, it intends to integrate them alongside the new AI5 technology. This strategy is part of Tesla’s broader ambition to enhance artificial intelligence capabilities across its operations.
