Tesla shares dropped nearly 4% in early Frankfurt trading on Thursday after the company reported quarterly profits below Wall Street expectations. The weaker results were attributed to higher tariffs, rising research expenses, and a decline in income from regulatory credits.
Despite the profit miss, revenue exceeded forecasts, supported by record electric vehicle sales during the quarter. Strong demand came from U.S. buyers rushing to secure a key tax credit before it expired last month.
So far in 2025, Tesla’s Frankfurt-listed stock is down around 10%, contrasting with an 8.7% gain in New York trading. The results highlight investor caution as the company navigates margin pressures and shifting global EV incentives.
