On October 22, Tesla released its financial report for the latest quarter, revealing that its profits have decreased year-on-year for two consecutive quarters. This decline is attributed to significant investments in cutting-edge technology sectors, notably autonomous vehicles and humanoid robots. Specifically, Tesla’s net profit for the third quarter dropped to $787 million, down from $1.4 billion during the same period last year, marking a roughly 44% decrease. Meanwhile, its revenue climbed to $28 billion, nearly matching the figure from the previous year.

Market analysts had anticipated Tesla’s third-quarter net profit to reach $785 million, with revenue hitting $27.88 billion. Tesla CEO Elon Musk had previously cautioned that the company’s allocation of resources toward AI-driven autonomous driving technology and humanoid robot development would put a dent in profits, given that revenue from these emerging ventures is still limited.

Despite these challenges, Tesla reported positive free cash flow of $1.53 billion for the third quarter, defying market expectations of a negative $4.921 billion.