Tesla is now also paying the price for tariffs: profits have fallen by 37%.

MILAN – Tesla is also paying the price for tariffs . The company posted third-quarter profits of $1.4 billion, down 37% from the same period a year earlier. In addition to the tariffs, which executives said cost the company $400 million in the quarter, higher restructuring expenses and lower revenue from regulatory claims also impacted earnings, which fell short of analysts' expectations. Revenue rose 12% to $28.1 billion, while operating expenses jumped 50% to $3.4 billion, partly due to increased research and development spending.

While Tesla faces "near-term uncertainty due to changes in trade, tariff, and tax policies," the company is making investments that will deliver "incredible value for Tesla and the world in transportation, energy, and robotics," Tesla said. US sales of electric vehicles produced by Tesla and other companies surged in the third quarter as a federal tax credit expired on September 30, prompting buyers to buy vehicles sooner.