Tesla's profits plunge despite record revenue and deliveries

Tesla announced record global vehicle deliveries of 497,099 units for the third quarter of 2025. This record-breaking quarter also saw revenue reach $28.1 billion, a 12 percent increase year-over-year. Despite the impressive revenue, net income decreased by 37 percent due to factors like reduced EV prices and increased R&D spending. Tariffs on imported materials cost Tesla over $400 million during the quarter, as reported by the finance chief. Tesla plans to continue increasing its investment in research and development moving forward. Elon Musk anticipates launching driverless robotaxis in certain areas of Austin by the end of the year. Musk shared cautious plans for expanding the robotaxis to eight to ten new states before 2025 ends. Tesla's AI5 AI chip will be produced by both Samsung and TSMC. The company aims to produce excess AI5 chips for its data centers and vehicle production. Tesla also clarified its ongoing use of NVIDIA chips alongside the AI5 technology.