Tesla Inc.’s profit plunged more than expected as sharply rising costs undercut a record quarter of vehicle sales.

Adjusted earnings were 50 cents a share in the period, down 31% from a year ago, the company said Wednesday in a statement.

Analysts had expected 54 cents on average in estimates compiled by Bloomberg. Revenue of $28.1 billion beat expectations.

The results show the EV manufacturer isn’t immune to the rising costs that have buffeted the nation’s auto industry all year as President Donald Trump radically overhauls policy. Tesla’s operating expenses soared 50% to $3.4 billion in the quarter, while the company expects about $400 million of impact from US tariffs.

Chief Executive Officer Elon Musk is promising a future built around artificial intelligence, humanoid robots and

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