Tesla Inc shares are trading lower after the company released its third-quarter results. The decline can be attributed to several factors, including:
- Bearish momentum
- Mixed earnings report, with revenue beating estimates but adjusted earnings missing estimates
What to Know
- Tesla reported third-quarter revenue of $28.10 billion, exceeding analyst estimates of $26.24 billion
- Adjusted earnings per share were 50 cents, missing estimates of 54 cents per share
- Total revenue increased 12% year-over-year, with automotive revenue climbing 6% year-over-year to $21.2 billion
- The company produced 447,450 vehicles and delivered 497,099 vehicles in the third quarter, with growth across all regions
Earnings Call Insights
During the earnings call, CEO Elon Musk discussed Tesla’s AI strategy, including:
- Optimus
- Robotaxi vision
Musk also urged investors to vote for his proposed compensation package.
Company Outlook
Tesla faces near-term uncertainty due to shifting trade, tariff, and fiscal policy. However, the company remains focused on long-term growth and value creation.
“We are prudently making the necessary investments in our business, including future business lines, that we believe will drive incredible value for Tesla and the world across transport, energy, and robotics.”
“We believe our scale and cost structure will enable us to navigate the shifting market dynamics across the globe more effectively than our peers, with advances in AI making our products the most compelling in the market.”
Upcoming Developments
- Tesla’s Cybercab, Semi, and Megapack 3 are on track for volume production next year
- The company’s first-gen production lines for Optimus are being installed in anticipation of volume production
Analyst Reactions
- Cantor Fitzgerald analyst Andres Sheppard maintained an Overweight rating and raised the price target from $355 to $510
- Needham analyst Chris Pierce reiterated Tesla with a Hold rating
Stock Performance
- Tesla shares were down 3.36% at $424.23 at the time of publication on Thursday
- Despite the decline, the stock is still up over 100% over a one-year period