Tesla’s revenue grew — but so did its operating costs
A customer with a Tesla Model YL electric vehicle at a Tesla store in Shanghai, China on October 19, 2025.
CFOTO | Future Releases | Getty Images
There are two ways to increase a company’s profits: increase sales or decrease costs. Possibly both at the same time – because rising costs can lead to rising revenues.
That’s what happened Tesla In the third quarter. Revenue at Elon Musk’s electric vehicle company rose 12% year over year, the first increase in three quarters. Despite this, net income fell 37% from a year ago.
Criminal? Lower vehicle prices, In a bid to potentially compete Chinese manufacturers who are vacuuming According to Tesla, artificial intelligence and “other R&D projects” have led to increased market share, as well as a 50% increase in operating costs.
Tesla’s after-the-bell report left investors unimpressed, sending its shares down 3.8% in extended trading. The company’s earnings report is disappointing Netflix And Texas Instruments earlier in the day, causing their shares to sink 10% and 5.6%, respectively, during regular trading stateside on Wednesday.
Those moves dragged the broader market down. The three major US indices fell, although they managed to recoup some losses by the end of the session. However, the S&P 500 And Nasdaq Composite Now looking at the drop in October.
There are only six days left until the end of October. But it’s been a busy six days with earnings reports from tech behemoths like the alphabet, apple, Meta And MicrosoftWhich could very well change the fate of the stock.
The crypto industry recently had its worst day ever. In the 24-hour period beginning Friday, October 10, more than 1.6 million traders collectively faced the erasure of $19.37 billion in leveraged positions.
More than a week after the incident, its repercussions are felt mainly in smaller coins. Bitcoin Trading roughly 11% below the October 10 high. But lesser-known coins like XRP, solana, dogecoin and BNB are trading between 15% and 24% above their pre-liquidation prices.
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