Tesla's stock drops 4.4% this week

Business Oct 23, 2025

Tesla's stock took a 4.4% hit this week after missing profit targets for the fourth quarter in a row, even though more people are buying Teslas than ever.

Factors affecting Tesla's profits

Rising costs—like $400 million in tariffs—and shrinking regulatory credits are eating into profits.
A rush of US buyers grabbed Teslas before tax breaks expired, which boosted recent sales but could mean slower demand ahead.

Tesla's stock performance in 2025

Tesla's stock has been all over the place in 2025: down nearly 40% at one point, then bouncing back as investors bet on its robotics and AI dreams.
Still, most of Tesla's money comes from selling cars, and even with new cheaper models and cost cuts, profit margins remain under pressure.