Tesla delivered a record number of vehicles in the third quarter of 2025, thanks in large part to a rush of customers in the United States who took advantage of the expiring federal EV tax credit. But that record quarter did not lead to greater earnings. In fact, Tesla’s third-quarter profit was still 37% lower than it was in the same quarter last year.

Tesla shipped 497,099 cars in the third quarter, which generated $21.2 billion in automotive revenue — the company’s best revenue figure in more than a year. But Tesla only pulled in a profit of $1.4 billion, up just $200 million from the second quarter of this year, according to a shareholder letter released Wednesday.

The company explained in the letter that a big increase in operating expenses — 50% higher compared to the third quart

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