Tesla profit falls 37% to $1.4 billion on higher costs, tariffs despite record sales

Tesla reported a hefty drop in profits Wednesday, citing a drag from tariffs and other expenses that more than offset increased auto sales. Elon Musk’s electric car company reported profits of $1.4 billion.

Besides tariffs, the company’s earnings press release cited higher restructuring expenses and lower revenues from regulatory credits as factors in the profits, which lagged analyst expectations.