Tesla's third-quarter revenue exceeded expectations, but profits were under pressure

Tesla (TSLA. O) posted a lower-than-expected third-quarter profit even as its electric vehicle sales hit a record high, a sign that the company is facing pressure from changing U.S. policies and rising costs. The company reported adjusted earnings of 50 cents per share for the third quarter. That compares with analysts' average estimate of 54 cents. However, quarterly revenue of $28.10 billion beat market expectations. The company reiterated last-quarter statements that it was difficult to measure how changing global trade and fiscal policies would affect its business and operations. Tesla believes its results depend on the broader macroeconomic environment, as well as how quickly it accelerates its self-driving efforts and boosts production of key products. Analysts expect Tesla's vehicle deliveries to decline for the second year in a row. Earlier this month, Tesla reported record third-quarter sales as consumers snapped up streetcars ahead of a U.S. tax credit that expires on September 30, providing a temporary boost to the company's core auto business.