Analysts Expect Revenue Rebound, but Margins in Focus
Tesla is set to release its third-quarter earnings after the bell on Wednesday, with Wall Street expecting a modest revenue rebound. According to LSEG, analysts forecast earnings per share of 54 cents and revenue of $26.37 billion, marking a 4.7% year-over-year increase after two consecutive declines.
Still, projections for Q4 suggest a 1.2% revenue drop, signaling ongoing headwinds. On Tesla’s previous call, CEO Elon Musk and CFO Vaibhav Taneja flagged higher tariffs and the end of federal EV tax credits as key pressures. The expiration, tied to President Trump’s spending bill, pulled forward sales but created a soft patch for future quarters.
Deliveries Break Records, but Demand Concerns Remain
Earlier this month, Tesla reported 497,099 vehicle deliveries in Q3 — a record — with production at 447,450 units. However, total deliveries for the first nine months of 2025 are down 6% year over year. Despite delivery growth, the company’s European sales continue to slump, partly due to rising competition from Volkswagen and BYD, and backlash against Musk’s political comments.
In Q2, Tesla posted $16.7 billion in automotive revenue, including $439 million from regulatory credits. Investors will watch closely to see if Q3 margins held up amid pricing pressure and supply chain shifts.
Robotaxis, Cybercab and Energy Business in the Spotlight
Beyond core vehicle metrics, analysts at Cantor Fitzgerald are focused on several near-term catalysts. These include updates on Tesla’s Robotaxi projects in Texas and California, progress on the lower-cost Model 3 and Y, and international adoption of premium driver assistance systems.
Attention is also on the upcoming Cybercab launch, a steering-wheel-free robotaxi due in 2026, and on Tesla’s humanoid Optimus robots, which are still in development. On Tesla’s investor Q&A platform, many shareholders also asked how AI is fueling demand for Tesla’s energy storage and solar products in sectors like data centers.
Brand Momentum Slows as Tesla Slips in Global Rankings
Tesla’s stock is up nearly 7% in 2025 but still trails the broader market. According to S&P Global, auto industry demand remains fragile due to sluggish disposable income and trade uncertainty, despite an upward revision in 2025 U.S. light vehicle sales estimates to 16.1 million units.
Tesla also fell to 25th place in Interbrand’s 2025 Best Global Brands, dropping from 12th in 2024. Brands like Toyota, Mercedes and BMW outperformed. The report pointed to “a lack of recent product innovation” and Musk’s political distractions as key reasons for Tesla’s decline.
Executives will address these topics during the earnings call at 5:30 p.m. ET. The results and commentary could set the tone for Tesla’s trajectory into 2026 — especially as rivals gain ground and investors seek clarity on Tesla’s next big leap.
