Bloomberg Intelligence Tesla’s Profit Tumbles as Costs Undermine Record EV Sales
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Oct 23, 2025 
Steve Mann, a Global Autos and Industrials Research Analyst, dissects Tesla's surprising profit drop despite record sales, highlighting costs that crimped margins. He also debates Tesla's reliance on car sales amid ambitious AI projects. John Butler, a Senior Telecom Analyst, shares insights on T-Mobile's solid subscriber growth and the impact of promotions on pricing. Finally, George Ferguson, a Senior Aerospace Analyst, discusses American Airlines' unexpected loss and Southwest's shift towards monetizing its services with new fees.
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Record Sales But Squeezed Margins
- Tesla's record vehicle volumes didn't prevent a 40% plunge in operating profit due to rising depreciation, tariffs, and R&D costs.
- Steve Mann highlights costs and increased R&D as key reasons margins compressed despite higher production.
Control Over Cash Motivates Musk
- Elon Musk's compensation push seems driven more by a desire for control than personal wealth, according to Steve Mann.
- Musk's focus on physical AI and past experiences (e.g., OpenAI) shape his fear of being pushed out.
Keep Selling Cars To Fund R&D
- Tesla still needs to sell cars to generate cash to fund ambitious AI and robot projects, Steve Mann warns.
- He implies management should maintain car production and pricing that sustain R&D investments.