Tesla's record sales quarter barely boosted profit

Core Insights - Tesla achieved a record vehicle delivery of 497,099 units in Q3 2025, primarily driven by a surge in U.S. customers taking advantage of the expiring federal EV tax credit, but profits fell 37% year-over-year [1][2] Financial Performance - The company generated $21.2 billion in revenue, marking its best revenue figure in over a year, but only reported a profit of $1.4 billion, which is a modest increase of $200 million from Q2 2025 [2] - Operating expenses rose by 50% compared to Q3 2024, attributed to increased spending on AI, R&D projects, and restructuring charges of nearly $240 million [3] Future Outlook - Tesla faces pressure to achieve another record quarter to match vehicle shipments from 2024 or 2023, with potential support from new, slightly cheaper versions of the Model 3 and Model Y [4] - The company is significantly off its previously promised 50% year-over-year growth trajectory [4] Corporate Governance - Tesla is proposing a $1 trillion share package for CEO Elon Musk, which is set for a vote at the upcoming annual shareholder meeting, despite advisory groups recommending against it [5] - Musk has indicated he may leave Tesla if the compensation package is not approved, highlighting the contentious nature of the proposal [6]