Tesla Inc (NASDAQ:TSLA) stock fell 1.53% (As on October 23, 11:35:56 AM UTC-4, Source: Google Finance) after the company reported jump in costs that dented the electric vehicle manufacturer’s profits, despite record sales during the recently concluded quarter. 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. 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. Operating cash flow in the quarter came in at $6.2 billion and free cash flow was nearly $4 billion — another record. Tesla also saw a $4.9 billion increase in cash and investments to $41.6 billion.

Moreover, Tesla manufactured 447,000 vehicles in the quarter and delivered 497,000, a record for both. Model 3 and Y production and deliveries were 435,826 and 481,166, respectively, while other models saw deliveries of 15,933, up 7% year-over-year. The company’s energy generation business also reported strong figures, with 12.5 gigawatt-hours of energy storage products deployed in the quarter, also a record high for Tesla. Gross profit in the energy generation and storage business also increased sequentially and year-over-year to a record $1.1 billion. For Tesla’s services and other segment, the company added 3,500 new Supercharging stalls in the quarter, up 18% year-over-year. The quarter also saw the launch of v4 Supercharger cabinets that offer three times the power density and two times the number of stalls per cabinet compared with v3, resulting in higher throughput, higher efficiency, lower cost and faster deployments.

TSLA in the third quarter of FY25 has reported the adjusted earnings per share of 50 cents, missing the analysts’ estimates for the adjusted earnings per share of 54 cents. The company had reported the adjusted revenue growth of 12 percent to $28.1 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $26.21 billion, as per Bloomberg. EBITDA for the quarter was of $4.23 billion vs $3.78 billion expected. Operating profit fell 40% to $1.624 billion from a year ago.