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Did Elon Musk just trade profit for
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robot army? Tesla's Q3 results have
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landed and the market is not happy.
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Let's break down why shares tanked
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nearly 4% in after hours trading last
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night. Here's the good news for Musk.
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People are still buying the cars.
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Revenue hit 28.1 billion, up 12%, and
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that actually beat Wall Street
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forecasts. Record vehicle sales will be
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a relief for a company hit by rolling
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boycotts over the last year. Now for the
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bad news, and this is a big one. Profit
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absolutely crated. It dropped a hefty
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29% to $1.8 billion. Why the big hit?
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There are three reasons. Number one,
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rising global tariffs and import costs,
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which Tesla CFO said took a $400 million
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chunk out of earnings this quarter
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alone. Number two, the loss of income
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from selling those emission credits. And
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three, the huge spending on the future.
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Tesla is pouring cash into its AI pivot,
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specifically the self-driving and
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Optimus robot projects. They're still
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promising the Cyber Cab robo taxi and
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semi-truck for volume production in 26,
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but the city is clearly asking, can this
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huge bet on the future be paid for by
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today's shrinking profits? The cost of
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Musk's ambitions is now being tallied.
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Stick with City AM for the market
