Operating expenses for the quarter soared by 50% year-on-year to $3.4 billion. Tesla sees an impact of $400 million due to the Trump administration’s tariff policy.
Chief Financial Officer Vaibhav Taneja acknowledged that competition and tariffs represent obstacles for the company.CEO Elon Musk is promising a future that will have AI, humanoid robots and self-driving technology, but the costs and the timelines associated with all these lofty goals have led to multiple uncertain questions in the minds of investors. Sales also jumped during the quarter as the fiscal incentives to buy EVs expired on September 30.
Tesla saw $417 million in revenue from regulatory credits that it receives from other automakers that exceed emission standards, nearly the same as what it earned during the previous quarter. The company expects this business to decline due to the policy changes made under the Trump administration.Musk expects Tesla’s robotaxi business, which launched in Austin in June, to expand to as many as 10 metropolitan areas by the end of the year if the company receives the necessary approvals.
The world’s richest individual spent the end of Tesla’s earnings call pleading investors to ratify his $1 trillion pay package and came out against advisory firms recommending a vote against such a proposal.
“I just don’t feel comfortable building a robot army here and then being ousted because of some asinine recommendations from ISS and Glass Lewis who have no freaking clue,” Musk said, referring to the proxy advisory services who he said aren’t voting in shareholders’ interests.
Shares of Tesla are currently down 4% in extended trading, having ended regular trade 0.8% lower.
(With Inputs From Agencies.)
