Tesla reported a hefty drop in profits Wednesday, citing a drag from tariffs and other expenses that more than offset a lift from increased auto sales.

Elon Musk’s electric car company reported profits of $1.4 billion in the third quarter, down 37 percent from the year-ago period.

Besides tariffs, the company’s earnings press release cited higher restructuring expenses and lower revenues from regulatory credits as factors in the profits, which lagged behind analyst expectations.

Revenues rose 12 percent to $28.1 billion, while operating expenses jumped 50 percent to $3.4 billion, due in part to heftier outlays on research and development.

While Tesla faces “near-term uncertainty from shifting trade, tariff and fiscal policy,” the company is making investments that will lead to “incredi

See Full Page