Tesla Q3 net profit drops 43% as costs rise

Tesla reported a 43 percent year-on-year decline in third-quarter net profit on Wednesday, with revenue nearly flat amid falling vehicle deliveries and higher operating expenses. Net income fell to 787 million dollars from 1.37 billion dollars a year earlier, while operating income dropped 56 percent to 718 million dollars. Tesla attributed the decline to higher costs for artificial intelligence and research projects, increased stock-based compensation, and lower regulatory credit revenue. Automotive revenue fell 3 percent to 20.56 billion dollars, with deliveries down about 2 percent to 486,532 vehicles. Capital expenditures more than doubled to 4.73 billion dollars. Full Self-Driving subscriptions rose 67 percent to 1.74 million, and Tesla launched Cybercab rides in Austin, Texas.