Tesla Profits Dive as EV Sales Cool and AI Costs Soar

Tesla's quarterly profit fell sharply, pressured by weaker electric vehicle sales and heavy spending on artificial intelligence. The company's core auto business faces growing competition and reputational issues. This has led to a drop in vehicle deliveries over the past year. At the same time, Tesla is investing billions of dollars into AI development, including its self-driving software and robotics projects. This surge in spending is further impacting its bottom line. The results highlight Tesla's transition phase. It is navigating a tougher EV market while betting heavily on future AI-driven technologies.