Tesla reported third-quarter revenue of about $28.1 billion for 2025, up about 12% compared to the same period last year. Consensus estimates had been at about $26.3 billion, meaning the company beat expectations on the top line. However, profitability took a big plunge: net income came in at about $1.4 billion, way down from the same period last year.
The operating margin fell to 5.8%, compared with 10.8% a year earlier. The gross margin was about 18%, down from 19.8% in Q3 2024. These figures show that Tesla’s costs are increasing faster than its revenues, indicating rising competitive pressure and price cuts that have cut the profit per vehicle.
Tesla manufactured 447,450 vehicles during the quarter and delivered 497,099, its best quarterly delivery number ever. Of course, that was partly driven by customers racing against the expiration of the US federal EV tax credit worth $7,500. At the same time, however, it suggests the company pulled some deliveries forward from future quarters.
Another bright spot emerged in Tesla’s energy storage business, which deployed approximately 12.5 GWh of battery storage systems, a new record quarter. Energy generation and storage revenue jumped 44% year-over-year, indicating that this is starting to become a meaningful contributor to overall performance.