Tesla’s Profit Plummet: Record Vehicle Sales Can’t Curb Musk’s Financial Downturn

NEW YORK – On Wednesday, Tesla, headed by Elon Musk, revealed a significant uptick in vehicle sales over the last quarter, recovering from earlier boycotts. However, the increase in sales did not prevent a notable decline in profits.

For the third consecutive quarter, Tesla’s earnings took a hit, dropping to $1.4 billion, or 39 cents per share, from $2.2 billion, or 62 cents per share, in the previous year. When excluding particular charges, the earnings stood at 50 cents per share, falling short of last year’s 72 cents and missing Wall Street’s prediction of 56 cents per share.

Despite the dip in profits, Tesla saw its revenue climb to $28.1 billion from $25.2 billion, surpassing Wall Street’s expectations during the months from June to September.

In response to these figures, Tesla shares experienced a 1% decrease, settling at $434.82 in after-hours trading.

Financial experts have been adjusting their revenue forecasts upwards since Musk announced earlier this month that electric vehicle sales, a key component of Tesla’s diversified operations, increased by 7% in the quarter, bouncing back after a year-long slump.

The sales were boosted by customers rushing to take advantage of a $7,500 federal tax credit for those EV purchases before it expired on Oct. 1, possibly stealing sales from the current quarter.

Tesla was also helped by surging sales from its separate battery storage business, but the EVs still make up much of the overall revenue figures.