Tesla's shares experienced a 3% decline before the market opened on Thursday, as the electric vehicle company's quarterly profit failed to meet market forecasts despite achieving record sales. This downturn is attributed to escalating costs and dwindling regulatory credits.

This is the fourth consecutive time Tesla has fallen short of profit expectations, signaling that even this leading car manufacturer is not immune to the financial pressures affecting the automotive industry, especially as President Donald Trump introduces significant changes to U.S. policies. In 2025, Tesla's stock has been volatile, dropping as much as 39% due to weak demand and CEO Elon Musk's affiliations with the Trump administration, which incited political backlash and consumer boycotts.

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