Latest News Tesla has delivered its biggest-ever quarterly revenue yet still saw profits tumble, highlighting the challenges facing the electric vehicle (EV) giant and CEO Elon Musk. For the third quarter, Tesla reported revenue of US$28.1 billion (A$43 billion), up 12% year-on-year, driven by record vehicle deliveries and surging energy-storage deployments. Free cash flow hit a record US$4 billion. The company delivered nearly 497,100 vehicles, including Model 3 and Model Y variants, as US buyers rushed to claim a $7,500 federal EV tax credit before it expired on September 30. Despite the revenue surge, Tesla’s net income fell 37% to US$1.4 billion, missing analyst expectations. Earnings per share came in at US$0.50, down from US$0.81 a year ago. Wall Street reacted with a 1.3–1.8% dip in after-hours trading. Analysts said Tesla’s lower margins reflect rising operating costs, price cuts on popular models and a decline in lucrative regulatory credit sales. The company also faces growing competition from traditional automakers and Chinese EV makers such as BYD, which is on track to surpass Tesla as the world’s top EV seller. Tesla is simultaneously pursuing ambitious AI and robotics projects. Musk highlighted the rollout of its FSD v14 software, expanded Robotaxi pilot programs, and near-term production plans for the Cybercab autonomous vehicle and Optimus humanoid robot. The company expects volume production of the Cybercab, Tesla Semi and Megapack 3 to begin in 2026. Investors are also eyeing Musk’s proposed pay package, potentially worth more than US$1 trillion over 10 years, which shareholders will vote on at Tesla’s November 6 annual meeting. The package is intended to retain Musk as Tesla shifts focus from traditional car sales to autonomous vehicles and robotics. About Post Author