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Tesla profits drop more than a quarter despite record sales

Loss of emissions credit revenue and big investments in AI and robotics hit Elon Musk’s carmaker

Tesla said its quarterly profit fell by more than a quarter as the loss of emissions credit trading revenue and the costs of its pivot to robotics and artificial intelligence ate into its margins.

Elon Musk’s carmaker reported that its third-quarter adjusted net income fell 29 per cent to $1.8bn, missing expectations of $1.9bn, according to a filing on Wednesday.

Revenue increased 12 per cent to $28.1bn, against average analyst estimates of $26.6bn from Visible Alpha.

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