:max_bytes(150000):strip_icc()/GettyImages-2241317929-ddeadb6e468445df954bcc8a88c69548.jpg "Tesla Is Set To Report Earnings Today. Here’s What You Need To Know.")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2241317929-ddeadb6e468445df954bcc8a88c69548.jpg)
Key Takeaways
- Tesla is scheduled to report third-quarter results after the closing bell on Wednesday, and is expected to say it returned to revenue growth after two quarters of declines.
- Investors will be watching for updates on Tesla’s Robotaxi rollout, production plans for its Cybercab and Optimus humanoid robot, and recently unveiled low-cost models.
- Options pricing suggests Tesla stock could approach a record high in the days after Wednesday’s report.
Tesla (TSLA) is slated to kick off Magnificent Seven earnings when it reports third-quarter results after the closing bell on Wednesday.
The electric car maker, which topped quarterly delivery estimates earlier this month, is expected to say it returned to revenue growth last quarter after two consecutive quarters of decline. Sales are expected to increase about 5% to $26.6 billion, while adjusted earnings are expected to decline about 25% to 54 cents a share, according to analysts estimates compiled by Visible Alpha.
Why This Is Important
Tesla is the first of the Magnificent Seven to report third-quarter earnings this week. It’s results could set the tone for the remainder of the Mag 7, all of which are valued at more than $1 trillion and, thus, have an outsized impact on the performance of the broader stock market.
“After a brutal few quarters we are finally starting to see stable demand trends for Tesla,” wrote Wedbush analyst and noted Tesla bull Dan Ives in a note on Sunday. Investors, he said, will be looking for comments on Tesla’s Robotaxi rollout, the production trajectory for its Cybercab and Optimus humanoid robot, and an upcoming shareholder meeting where investors will vote on CEO Elon Musk’s potentially $1 trillion pay package and a shareholder proposal to invest directly in Musk’s AI startup, xAI.
Tesla has had a chaotic year, but it started on a positive note, with the stock riding high on optimism about the incoming Trump administration and Musk’s sway within it. That optimism began fading in February as President Trump implemented sweeping tariffs and consumers protested Musk’s political activities. Since Musk left the administration in May, Tesla has launched its first Robotaxi service in Austin, Texas, and unveiled long-awaited low-cost models.
The chaos of this year was reflected in Tesla’s stock. Shares fell 45% between the start of the year and early April, when President Trump’s “Liberation Day” tariffs rattled markets. The stock has since recovered—aided by tariff pauses, the Federal Reserve’s interest rate cuts, and optimism about the company’s AI efforts—and is up about 8% since the start of the year as of midday Wednesday.
Traders expect Tesla shares to move about 6.4% in either direction by the end of the week, according to options pricing data. A move of that magnitude would put shares at about $471, their second-highest closing price on record, or at about $414.
“If Tesla can not only beat EPS expectations… but also impress by matching last quarter’s beat of 3% or better, that would move the stock higher, as the trend of upside surprises is growing,” said Brian Mulberry, Senior Client Portfolio Manager at Zacks Investment Management.
For Wedbush’s Ives, while the third quarter results and the outlook Tesla provides are important, they “take a backseat to the broader and important AI initiatives at Tesla.”
Ives has a $600 price target on Tesla stock, which is the highest among Wall Street analysts. “We continue to believe Tesla could reach a $2 trillion market cap early 2026 in a bull case scenario,” he added.
Tesla shares were down 2% at around $434 in recent trading. The company’s market capitalization stands at around $1.4 trillion.
