Tesla’s Net Income Plummets by 37% Despite Record Revenue and Deliveries
Despite achieving record vehicle deliveries and a revenue increase of 12%, Tesla’s net income dropped significantly by 37% in the third quarter of 2025. The decline is attributed to lower EV prices, increased spending on AI and R&D projects, as well as tariffs on imported car parts costing the company over $400 million. CEO Elon Musk plans to deploy fully driverless vehicles in multiple states before the year ends.
