Tesla Shatters Records with $28.1B Revenue in Q3 2025, Despite Earnings Miss
Tesla made headlines by delivering a record-breaking quarterly revenue of $28.1 billion in Q3 2025, surpassing Wall Street’s estimates of $26.4 billion. This represents a robust 12% year-over-year increase. However, the electric vehicle behemoth fell short of investor expectations, with earnings per share standing at $0.50, shy of the anticipated $0.54.
The Austin-based company marked several milestones during the quarter. Notably, Tesla achieved record vehicle deliveries of 497,099 units, a 7.3% increase from the same period last year. The company’s energy storage business was a standout performer, with revenue surging 44% year-over-year to $3.4 billion and achieving a record gross profit of $1.1 billion.
Despite the impressive revenue figures, Tesla’s profitability was under pressure. Operating margins dipped to 5.8% from 10.8% in the previous year’s quarter. This margin contraction was attributed to a combination of increased competition, price reductions, and higher operational expenses related to AI and research investments. On a brighter note, the company’s free cash flow saw a significant boost to nearly $4.0 billion, pushing total cash reserves to a record $41.6 billion.
During the earnings call, CEO Elon Musk emphasized Tesla’s growing AI capabilities. He highlighted the expansion of the company’s Robotaxi service and a new semiconductor manufacturing agreement with Samsung for AI inference chips. In addition, Tesla unveiled its next-generation Megablock energy storage system, integrating four Megapack 3 units for utility-scale deployment.
Source: CNBC