(MENAFN) US electric vehicle manufacturer Tesla saw its net income decline by 37% in the third quarter compared with the same period last year, despite a rebound in sales and a surge in purchases ahead of a federal tax credit deadline, according to reports.

Net income dropped to $1.37 billion for the quarter, down from $2.17 billion a year earlier, even as American consumers rushed to buy electric vehicles before the $7,500 federal tax incentive expired last month.

Revenue for the June–September period reached $28.1 billion, marking a 12% increase from $25.18 billion in the same quarter of the previous year. Automotive revenue specifically rose 6% to $21.2 billion, up from $20 billion.

The tax credit for electric vehicles, which was removed as part of former President Donald Trump’s funding package, expired at the end of the quarter, prompting many customers to accelerate their purchases into the period.

Automotive regulatory credit revenue, however, fell sharply by 44%, dropping from $739 million to $417 million.

Tesla also noted that, instead of committing to specific delivery targets for vehicles and energy products by year-end, "it is difficult to measure the impacts of shifting global trade and fiscal policies on the automotive and energy supply chains, our cost structure, and demand for durable goods and related services," as stated by reports.

CEO Elon Musk and Chief Financial Officer Vaibhav Taneja highlighted the effects of rising tariffs and the expiration of tax credits during Tesla’s most recent earnings call in July.

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