Tesla said Wednesday that its profit sank in the third quarter after it cut car prices to lift sales and earned less money from selling clean-air credits.
Profit fell 37 percent, to $1.4 billion from a year earlier, the company said. Revenue rose 12 percent, to $28.1 billion.
Tesla sold more cars from July through September than it did in the third quarter of 2024, but earned less money per car because it cut prices and offered low-interest loans for its most popular models.
The company reduced prices further this month, offering stripped-down versions of its Model 3 sedan and Model Y sport utility vehicle for around $5,000 less than the previous lowest-cost versions of those cars.
Tariffs also cut into profit, Tesla said. The company makes all the cars it sells in the United States in California and Texas, but must pay tariffs on imported raw materials and components.
The company declined to issue a forecast for sales and profit, saying, “It is difficult to measure the impacts of shifting global trade and fiscal policies on the automotive and energy supply chains, our cost structure and demand for durable goods and related services.”
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Tesla Profit Falls 37% After It Cut Car Prices
