Tesla's profits are under pressure
Tesla's operating income fell 56% year over year as AI and research and development costs climbed.
Elon Musk's electric vehicle company, Tesla, reported on Wednesday that its profits are facing headwinds. Operating income dropped 56% year over year to $718 million in the third quarter, falling short of Wall Street's estimates. Revenue also fell slightly below analysts' expectations at $28.05 billion, despite the company selling a total of 486,532 vehicles during the period.
The company attributed the decline to higher operating expenses related to AI efforts and other R&D projects. While Tesla remains profitable, with 48 cents in adjusted earnings per share above the 44-cent analyst consensus, it does not expect any new borrowing this year to support capital expenditures.
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