Tesla Reports Record $28.1B Q3 Revenue Amid Growth and Sustainability Challenges

Tesla's Q3 2025 report shows record vehicle deliveries of 497,099 units and significant growth in its energy and charging businesses, contributing to a quarterly revenue of $28.1 billion, a 12% increase year-over-year. Despite these gains, Tesla's profit margins remain under pressure due to higher operating expenses, tariffs, reduced revenues from CO2 credit sales, and the impact of cost-cutting measures like the introduction of cheaper 'Standard' Model 3 and Model Y trims. These new trims, which feature smaller batteries and fewer features, have helped boost sales but also squeezed margins, causing some investor concern. CEO Elon Musk's focus on future growth areas such as the robotaxi project and AI underscores Tesla's strategy to pivot beyond vehicle sales, which currently still drive most revenue and profit. Additionally, Tesla's expanding Supercharger network not only supports its customers but also benefits local businesses by attracting EV drivers who patronize nearby shops during charging stops. Overall, while Tesla is back on a growth trajectory, sustainability of its profit growth and margin expansion remains a key question for investors.