:max_bytes(150000):strip_icc()/GettyImages-2228665115-3801c797bf1e4c0c953101bb96ff5e44.jpg "Tesla Posts Return to Revenue Growth, Though Profits Miss Estimates")
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Key Takeaways
- Tesla posted revenue growth for the third quarter after two quarters of declines.
- The company, however, also turned in quarterly earnings per share that came in lower than analysts expected.
Tesla returned to revenue growth in the third quarter as buyers rushed to take advantage of expiring tax credits.
The electric vehicle maker’s revenue climbed 12% year-over-year to $28.1 billion, topping analysts’ expectations, in the wake of President Donald Trump’s signature “One Big Beautiful Bill.” Tesla (TSLA) said its vehicle deliveries reached a record high globally, showing “growth across all regions.” That followed two straight quarters of decline as a backlash against CEO Elon Musk’s political activities weighed on sales.
Why This Matters to Tesla Investors
A strong run of EV deliveries, many in response to the expiration of U.S. tax credits, helped power better-than-expected revenue at Tesla in the latest quarter. Enthusiasm about next-generation businesses like robots and robotaxis have pulled the stock into the black for 2025, but wariness about the car business may partly explain why it’s among the lower-performing Magnificent 7 stocks this year.
However, Tesla’s adjusted earnings per share of $0.50 missed the consensus estimate of $0.54 compiled by Visible Alpha. The company said it faced higher costs from restructuring and investments in AI.
The company in a shareholder letter said its Cybercab, semi truck and Megapack 3 battery products were “on schedule” for production at volume next year, adding that it was also installing production lines for its Optimus robots.
Shares of Tesla, the first Magnificent 7 company to report third-quarter results, were down more than 1% in extended trading following the late-Wednesday release. They were up roughly 9% for 2025 through today’s close, after spending much of the year in negative territory.
Tesla has underperformed every Magnificent 7 stock so far this year except Apple (AAPL) and Amazon (AMZN), the latter which is the only one in the red for 2025. It’s also lagged the Roundhill Magnificent Seven ETF (MAGS) along with the S&P 500, Dow, and Nasdaq.
This article has been updated since it was first published to reflect share price movement and add new information and context.
