Tesla Posts Record Revenue in Q3 2025, Expands EV Lineup; Eyes India Growth

Global EV major Tesla Inc reported a strong third quarter for 2025, clocking record global vehicle deliveries of 4.97 lakh EVs, record revenue of $28.1 billion, and its highest-ever free cash flow of nearly $4 billion, as the Austin headquartered EV maker deepened its product line-up and expanded into new markets, including India.

Financial Performance

For the quarter ended September 30, 2025, Tesla posted a GAAP net income of $1.4 billion and an operating income of $1.6 billion, translating into a 5.8 percent operating margin. Although profit was down 40 percent year-on-year, the company’s cash position surged, with cash and investments rising by $4.9 billion to $41.6 billion.

Total revenue rose 12 percent year-on-year, driven by higher vehicle deliveries and strong growth in energy storage, which climbed 44 percent to $3.4 billion. Services and other revenue grew 25 percent to $3.5 billion.

Tesla said operating expenses increased to $3.43 billion, up 50 percent from a year ago, primarily on higher R&D spending in artificial intelligence and autonomous vehicle technology.

Operational Highlights

The company delivered a record 497,099 vehicles in Q3, a 7 percent increase year-on-year. Tesla’s energy storage deployments jumped 81 percent to 12.5 GWh, backed by a ramp-up at its Shanghai Megafactory.

The EV major launched new products, including the Model 3 Standard and Model Y Standard in the US, priced at $36,990 and $39,990, respectively. It also unveiled the Model Y L, a longer-wheelbase version for China, and introduced the Model Y in India, marking a milestone in its entry into one of the world’s fastest-growing EV markets.

Technology and Future Plans

Tesla continued to advance its AI and autonomy programmes, deploying version 14 of its Full Self-Driving (FSD) Supervised software and planning to expand its Robotaxi ride-hailing service to the Bay Area. The company also announced a partnership with Samsung to manufacture AI semiconductors in the U.S.

On the energy front, Tesla launched its next-generation Megablock energy storage system and unveiled plans for Megapack 3 production at its upcoming Houston Megafactory in 2026.

In manufacturing, Tesla expects its lithium refinery in Texas to begin operations in late 2025 and LFP battery lines in Nevada by early 2026.

India Journey

Tesla’s official confirmation of Model Y deliveries in India during the quarter comes amid the government’s renewed push to attract global EV players under its FAME and PLI schemes. Industry observers believe Tesla’s entry could accelerate EV infrastructure growth and local component manufacturing, potentially paving the way for a localised assembly plant in the future.

Outlook

While Tesla acknowledged near-term challenges from shifting trade and fiscal policies, it reaffirmed a long-term focus on scaling its hardware and software businesses. Volume production of its Cybercab, Tesla Semi, and Megapack 3 is slated for 2026, with initial Optimus humanoid robot production lines already being installed.

Tesla Q3 2025 Key Figures