London Daily

Focus on the big picture.
Saturday, Sep 13, 2025

Tesla surprises with a profit in the third quarter

Tesla surprises with a profit in the third quarter

Tesla returned to profitability in the third quarter after two periods of losses surprising Wall Street and sending shares higher in after-market trading, according to earnings reported after market closed Wednesday.

The automaker’s third-quarter results included $143 million in net income, or 80 cents a share, compared with $311 million, or $1.82 a share, in the same year-ago period. Tesla earned $342 million, or $1.91 a share, in the third quarter when adjusted for one-time items.

Analysts had expected a loss of 46 cents per share and revenue of $6.42 billion, according to data compiled by FactSet.

Tesla reported revenue of $6.3 billion, slightly lower than the $6.35 billion generated in the previous period and more than 7.5% lower than the same quarter last year. But it was in line with analysts expectations.

Tesla said it is “highly confident” deliveries will exceed 360,000 deliveries this year.

The third-quarter report sent Tesla shares as high as 17% in after-market trading.

Tesla was also able to improve its automotive gross margins, an important sign of its financial health. The automotive gross margin widened to 22.8% in the third quarter, from 18.9% in the previous period. The automotive gross margin has not yet recovered to the 25.8% of the same quarter in 2018.

Tesla also reported free cash flow (operating cash flow less capital expenditures) of $371 million. The company’s cash and cash equivalents balance increased to $5.3 billion.

“We continue to believe our business has grown to the point of being self-funding,” Tesla said in its earnings report.

The third-quarter report contained a number of positive signs for the automaker and marked a reversal from several consecutive quarters of losses. Tesla said its factory in Shanghai is ahead of schedule and trial production has started.

The Model Y is also ahead of schedule, Tesla said. Production of the Model Y is expected to begin by summer 2020.

Last quarter, Tesla reported a wider-than-expected loss of $408 million, or $2.31 per share, and generated $6.3 billion in revenue in the second quarter despite record deliveries of its electric vehicles.

Other important highlights from the third quarter:

-The average selling price of Tesla’s vehicles have fallen. Tesla noted that the mix of Model 3 variants had increased.


-Automotive revenues were flat at $5.35 billion compared to the previous quarter. The company was able to reach profitability in large part due to cost-cutting measures. Operating expenses were 15% lower than the previous quarter.


-Tesla said it plans to “gradually release nearly $500 million of accumulated deferred revenue tied to Autopilot and Full Self Driving features.”


-Solar installations rebounded 48% to 43 megawatts in the third quarter. However, installations are still 54% lower than the same period last year.


-Energy storage deployments has continued to grow, reaching an all-time high of 477 MWh in the third quarter.

Newsletter

Related Articles

0:00
0:00
Close
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
Tens of Thousands of Young Chinese Get Up Every Morning and Go to Work Where They Do Nothing
The New Life of Novak Djokovic
The German Owner of Politico Mathias Döpfner Eyes Further U.S. Media Expansion After Axel Springer Restructuring
Suspect Arrested: Utah Man in Custody for Charlie Kirk’s Fatal Shooting
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
Pig Heads Left Outside Multiple Paris Mosques in Outrage-Inducing Acts
Nvidia’s ‘Wow’ Factor Is Fading. The AI chip giant used to beat Wall Street expectations for earnings by a substantial margin. That trajectory is coming down to earth.
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
On the Anniversary of Queen Elizabeth’s Death: Prince Harry Returns to Britain
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Murdoch Family Finalises $3.3 Billion Succession Pact, Ensuring Eldest Son’s Leadership
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Court Staff Cover Up Banksy Image of Judge Beating a Protester
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
Elon Musk Poised to Become First Trillionaire Under Ambitious Tesla Pay Plan
France, at an Impasse, Heads Toward Another Government Collapse
Burning the Minister’s House Helped Protesters to Win Justice: Prabowo Fires Finance Minister in Wake of Indonesia Protests
Brazil Braces for Fallout from Bolsonaro Trial by corrupted judge
The Country That Got Too Rich? Public Spending Dominates Norway Election
Nearly 40 Years Later: Nike Changes the Legendary Slogan Just Do It
×