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Tesla Shares Slide After Profit Miss Despite Record Sales. Tesla shares dropped 3% in premarket trading Thursday after the electric vehicle maker missed quarterly profit estimates, despite posting record sales. Rising costs and shrinking regulatory credits weighed on Tesla’s bottom line, marking its fourth straight profit miss. The shortfall underscores how even Tesla is feeling the strain of higher costs across the auto industry amid President Donald Trump’s sweeping policy changes. Tesla’s stock has swung sharply in 2025 — down 39% through March amid weak demand and political backlash tied to CEO Elon Musk’s relationship with the Trump administration. Record EV sales helped Tesla exceed revenue expectations last quarter, driven by U.S. buyers rushing to claim expiring tax incentives. But the expiration of key tax credits is expected to dampen demand for Tesla and other EV makers for the rest of the year. To counter slowing demand, Tesla recently launched cheaper “Standard” versions of the Model Y and Model 3, cutting prices by up to $5,500. The company’s costs also rose by over $400 million due to Trump-era tariffs, while investors await clarity on Tesla’s costly AI and self-driving projects and Musk’s pending compensation vote.
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