October 24, 2025 — Austin, Texas:
Tesla Inc. (NASDAQ: TSLA) reported record third-quarter revenue of $28.1 billion, beating Wall Street estimates but seeing profit drop sharply by 37% amid lower vehicle prices and rising costs.
Despite the sales milestone, CEO Elon Musk used much of the company’s earnings call to defend his proposed $1 trillion compensation package, describing critics as “corporate terrorists.”
Record Revenue, Slumping Profit
Tesla’s third-quarter revenue rose 12% year over year, exceeding analyst expectations of $26.37 billion after two consecutive quarters of decline. However, net income fell to $1.37 billion, or 39 cents per share, compared to $2.17 billion, or 62 cents, a year earlier.
The decline was largely driven by aggressive price cuts across its electric vehicle lineup and a 50% increase in operating expenses.
On an adjusted basis, Tesla earned 50 cents per share, missing Wall Street’s consensus estimate of 54 cents. Shares fell nearly 5% in after-hours trading, as investors reacted to the margin pressure despite record revenue.
Bitcoin Boost Falls Short
Tesla reported a $62 million gain on its Bitcoin (BTC) holdings as the cryptocurrency climbed about 5% during the quarter to around $114,000 per coin.
The company still holds roughly 11,000 Bitcoins, valued at more than $1.2 billion at the end of the quarter. However, the cryptocurrency gain was not enough to offset the company’s profitability challenges.
Even with record sales, Tesla continues to face cost pressures and weaker profit margins. The company’s stock is up 9% year-to-date, underperforming the Nasdaq’s 18% gain and lagging major technology peers such as Nvidia and Meta.
Musk’s $1 Trillion Pay Defense
During the earnings call, Musk vigorously defended his proposed $1 trillion pay package, arguing the matter was about maintaining sufficient control over Tesla’s future.
He said he needs around 25% of voting power to lead the company through its next phase focused on artificial intelligence, robotaxis, and humanoid robots.
“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,” Musk said. “I should still be fireable if I go insane.”
Tesla executives closed the call by urging shareholders to support the upcoming November 6 vote on Musk’s record-breaking compensation plan.