Tesla has announced record quarterly revenue of $28 billion for the three months ending September, marking a 12% increase compared to the same period last year. However, the electric vehicle (EV) giant also reported a 37% drop in profits, attributed to rising costs from tariffs, research and development (R&D), and its ambitious artificial intelligence (AI) and robotics initiatives. The company’s financial performance comes as it faces intensifying competition from Chinese automakers like BYD and grapples with the impact of U.S. tariffs on imported car parts and raw materials.