Arab Press

بالشعب و للشعب
Tuesday, Nov 18, 2025

Tesla cracks the $1 billion profit mark

Tesla cracks the $1 billion profit mark

Tesla posted record profits Monday - its third record quarter in a row - as its adjusted earnings reached the $1 billion mark for the first time.
The company recorded $9 billion in total revenue. That was slightly lower than fourth quarter sales but up 75% from the year-earlier period.

Revenue was partly held back as it stopped building its two most expensive models, the Model S and Model X, during the quarter, as it prepared to roll out new versions of those vehicles and dealt with a shortage of computer chips that has dogged the entire auto industry.

But Tesla said it weathered the chip shortage "in part by pivoting extremely quickly to new microcontrollers, while simultaneously developing firmware for new chips made by new suppliers." CEO Elon Musk told investors later Monday that the chip shortage was "a huge problem" for Tesla, and that the company "had some of the most difficult supply chain challenges that we've ever experienced."

Shares of the company fell 3% in premarket trading.

It said its deliveries of the new Model S "should start very shortly." But that was the same prediction made when it reported fourth-quarter results three months ago. Musk again seemed more cautious than the company's earnings statement, saying that it had experienced "just a lot of issues" with the new Model S and Model X. He said deliveries of the Model S would resume deliveries "probably next month," and that volume deliveries of the two cars would not resume until the third quarter.

The company was also helped by an investment in bitcoin. The company had previously disclosed it invested $1.5 billion in bitcoin in the quarter with some of its cash on hand. It said the sale of bitcoin during the period resulted in a $101 million profit.

It wasn't long ago that Tesla was losing money most quarters and in danger of running out of cash. It didn't report consecutive profitable quarters until the end of 2018, and it proceeded to lose money again over the first half of 2019.

But it has been profitable since the third quarter of 2019, and the stock has soared since then, climbing 1349% since it reported that third quarter profit in 2019. It is one of the nation's most valuable companies and its stock is worth more than the combined value of the world's seven largest automakers.

And its adjusted earnings in the first quarter could top that of some established automakers, such as Ford (F), according to analysts' forecasts, even though Ford sells far more cars.

Musk said the company should be able to stick to its target for better than 50% growth in sales this year, which would take sales over the 750,000 mark, and that it would be able to continue 50% sales growth annually beyond that. It has plants under construction in Texas and Germany, although he cautioned Monday that he expects only initial limited production from those factories this year. He said the two plants won't have volume production until 2022.

Musk and other Tesla executives defended the company's Autopilot feature that has been the focus of a recent fatal crash of a Tesla in a Houston suburb in which police said that investigators were certain that no one was in the driver's seat at the time of the crash.

Lars Moravy, Tesla's vice president of vehicle engineering, said the company is working with federal safety investigators and local police. He said that because the steering wheel was "deformed" it is now believed there was in fact someone in the driver's seat at the time of the crash. And he did caution "further investigation of the vehicle and accident remains."

Musk said that the company is making great progress on developing fully self driving cars, and the he believes it will be the key factor distinguishing it from other companies.

"Right now, people think of Tesla as a car company or energy company. I think long term, people will think of Tesla as much as an AI [artificial intelligence] robotics company as we are a car company or an energy company," he said. "I think we are developing one of the strongest hardware and software AI teams in the world."

Some critics of Tesla have questioned the strength of its earnings, pointing to the fact that its "adjusted" earnings excludes some costs such as stock compensation.

But many companies report adjusted earnings as well as a stricter version of net income that follow generally accepted accounting principles, or GAAP results. And even under those GAAP rules Tesla reported net income of $438 million, itself a record.

But the critics again say Tesla is losing money on actually selling cars and solar panels, its other primary business, and that it depends on selling $518 million in regulatory credits that other automakers need in order to comply with environmental rules, as well as the profit it reported on bitcoin trades.

The revenue and adjusted earnings both topped forecasts of Wall Street analysts surveyed by Refinitiv, although on a GAAP basis its net income fell a bit short of expectations.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Saudi Crown Prince to Press Trump for Direct U.S. Role in Ending Sudan War
Trump Hosts Saudi Crown Prince: Five Key Takeaways from the White House Meeting
Trump Firmly Defends Saudi Crown Prince Over Khashoggi Murder Amid Washington Visit
Trump Backs Saudi Crown Prince Over Khashoggi Killing Amid White House Visit
Trump Publicly Defends Saudi Crown Prince Over Khashoggi Killing During Washington Visit
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
Saudi Arabia’s Solar Surge Signals Unlikely Shift in Global Oil Powerhouse
Saudi Crown Prince Receives Letter from Iranian President Ahead of U.S. Visit
Saudi Arabia’s Crown Prince Begins Washington Visit to Cement Long-Term U.S. Alliance
Saudi Crown Prince Meets Trump in Washington to Deepen Defence, AI and Nuclear Ties
Saudi Arabia Accelerates Global Mining Strategy to Build a New Economic Pillar
Crown Prince Mohammed bin Salman Arrives in Washington to Reset U.S.–Saudi Strategic Alliance
Saudi-Israeli Normalisation Deal Looms, But Riyadh Insists on Proceeding After Israeli Elections
Saudis Prioritise US Defence Pact and AI Deals, While Israel Normalisation Takes Back Seat
Saudi Crown Prince’s Washington Visit Aims to Advance Defence, AI and Nuclear Cooperation
Saudi Delegation Strengthens EU–MENA Security Cooperation in Lisbon
Saudi Arabia’s Fossil-Fuel Dominance Powers Global Climate Blockade
Trump Organization Engages Saudi Government-Owned Real-Estate Deal Amid White House Visit
Trump Organization Nears Billion-Dollar Saudi Real Estate Deal Amid White House Diplomacy
Israel Presses U.S. to Tie Saudi F-35 Sale to Formal Normalisation
What We Know Now: Donald Trump’s Financial Ties to Saudi Arabia
Saudi Arabia’s Ambitious Defence Wish List for Washington: From AI Drones to Nuclear Umbrella
Analysis Shows China, Saudi Arabia and UAE among Major Recipients of Climate Finance Loans
Why a Full Saudi–Israel Normalisation Deal Eludes Trump’s Reach
Trump Presses Saudi Arabia to Normalise Ties with Israel as MBS Prepares for White House Visit
US-Saudi Summit Set for November 18 Seeks Defence Pact and Israel Normalisation Momentum
Comcast CEO Brian Roberts Visits Saudi Arabia Amid Potential Bid for Warner Bros. Discovery
Cristiano Ronaldo Embraces Saudi Arabia’s 2034 World Cup Vision with Key Role
Saudi Arabia’s Execution Campaign Escalates as Crown Prince Readies U.S. Visit
Trump Unveils Middle East Reset: Syria Re-engaged, Saudi Ties Amplified
Saudi Arabia to Build Future Cities Designed with Tourists in Mind, Says Tourism Minister
Saudi Arabia Advances Regulated Stablecoin Plans with Global Crypto Exchange Support
Saudi Arabia Maintains Palestinian State Condition Ahead of Possible Israel Ties
Chinese Steel Exports Surge 41% to Saudi Arabia as Mills Pivot Amid Global Trade Curbs
Saudi Arabia’s Biban Forum 2025 Secures Over US$10 Billion in Deals Amid Global SME Drive
Saudi Arabia Sets Pre-Conditions for Israel Normalisation Ahead of Trump Visit
MrBeast’s ‘Beast Land’ Arrives in Riyadh as Part of Riyadh Season 2025
Cristiano Ronaldo Asserts Saudi Pro League Outperforms Ligue 1 Amid Scoring Feats
AI Researchers Claim Human-Level General Intelligence Is Already Here
Saudi Arabia Pauses Major Stretch of ‘The Line’ Megacity Amid Budget Re-Prioritisation
Saudi Arabia Launches Instant e-Visa Platform for Over 60 Countries
Dick Cheney, Former U.S. Vice President, Dies at 84
Saudi Crown Prince to Visit Trump at White House on November Eighteenth
Trump Predicts Saudi Arabia Will Normalise with Israel Ahead of 18 November Riyadh Visit
Entrepreneurial Momentum in Saudi Arabia Shines at Riyadh Forward 2025 Summit
Saudi Arabia to Host First-Ever International WrestleMania in 2027
Saudi Arabia to Host New ATP Masters Tournament from 2028
Trump Doubts Saudi Demand for Palestinian State Before Israel Normalisation
Viral ‘Sky Stadium’ for Saudi Arabia’s 2034 World Cup Debunked as AI-Generated
Deal Between Saudi Arabia and Israel ‘Virtually Impossible’ This Year, Kingdom Insider Says
×