Tesla

Tesla’s Q3 revenue beat expectations with a 12% increase, but earnings fell short, leading to a stock dip. Profitability declined due to price cuts and increased operating expenses driven by AI investments. The expiration of EV tax credits and slumping European sales, influenced by Musk’s public persona and competition, added complexity. Tesla is focusing on long-term projects like Cybercab, Optimus robots, and Robotaxi expansion, but offered limited guidance, concerning investors about their Full Self-Driving system. Energy generation and storage saw significant growth, fueled partly by Musk’s AI venture, xAI.

Ahead of Tesla’s quarterly earnings, a coalition of labor unions and governance watchdogs launched “Take Back Tesla,” opposing Elon Musk’s proposed $1 trillion stock-based pay package. They argue it’s excessive, given Musk’s divided attention and political activities potentially harming the brand. Aiming to influence shareholder votes and pressure public pension funds, the campaign highlights concerns over Musk’s prioritization of Tesla amid other ventures. Proxy firms ISS and Glass Lewis also advise against the plan. The debate includes scrutiny of Musk’s control, commitment, and Tesla’s performance.

ISS recommends Tesla shareholders vote against Elon Musk’s proposed compensation package, a “mega performance equity award” valued near $1 trillion but raising concerns about its magnitude and alignment with long-term shareholder interests. Tesla’s board defends the package as crucial for retaining Musk and incentivizing growth. The firm also suggests voting against investing in xAI and reinstating a board member due to governance concerns. Musk, owning a substantial stake, could still secure approval despite the recommendations. The vote is pivotal for Tesla’s future leadership and governance.

GM’s projected $1.6B charge on EV investments signals growing EV strategy concerns among legacy automakers, compounded by the sunsetting of federal tax credits under President Trump. Tesla’s market share is declining amidst increased competition, despite leading in sales volume. As traditional automakers pull back, Tesla might benefit, but overall EV demand is expected to shrink. Musk is shifting focus to robotaxis and humanoid robotics. Analysts anticipate slowing revenue growth for Tesla, highlighting the impact of policy changes and market shifts.

The NHTSA is investigating Tesla’s Full Self-Driving (FSD) system after reports of safety defects. The investigation covers roughly 2.9 million Tesla vehicles equipped with FSD (Supervised) or FSD (Beta). At least 44 incidents involve Tesla drivers using FSD reporting the system caused traffic violations resulting in collisions. The agency will evaluate the clarity of warnings, driver reaction time, and FSD’s ability to respond to traffic signals. The probe comes as Tesla continues to develop and test its FSD technology, including Robotaxi services.

Tesla unveiled a new FSD iteration, met with cautious Wall Street optimism despite cryptic teasers that boosted the stock. Analysts speculate on a potentially new, lower-cost vehicle or the next-gen Roadster. While the Cybertruck faces challenges, Tesla shifts focus to robotics and autonomous driving amid slower auto sales and increased competition. The Cybercab remains in development, while past promises like the Roadster and robotaxi fleets remain unfulfilled. Tesla is also developing Optimus, a humanoid robot.

Tesla has released cryptic teaser videos on X, hinting at a potential new vehicle unveiling on October 7th. The teasers, featuring a spinning component and distinctive headlights, have fueled speculation about a next-generation Roadster or a long-anticipated mass-market model. Analysts believe a competitively priced vehicle is crucial for Tesla’s growth amidst increasing competition and evolving consumer preferences, especially in key markets like Europe and China, where domestic EV manufacturers are gaining ground. The unveiling’s success will be vital for Tesla’s future market position.

A federal court affirmed an arbitration award in favor of Matthews International against Tesla. The dispute’s specifics remain confidential, but sources suggest it involves automation technologies supplied to Tesla. This legal victory strengthens Matthews’ position as a reliable partner in industrial automation. While the financial impact on Tesla is likely manageable, the ruling adds to its operational challenges and raises concerns about future technology procurement disputes and reputational damage. The judgment underscores the importance of clear contracts and intellectual property rights within the EV industry.

Tesla reported 497,099 vehicle deliveries in Q3 2025, a 7% increase YoY, exceeding analysts’ expectations. Production slightly decreased to 447,450 units. Model 3 and Y accounted for most production (435,826). European sales slumped due to competition, offset by increased U.S. demand before a key EV tax credit expired. Ford’s EV sales are significantly lower than Tesla’s. Tesla’s stock rose 40% in Q3, up 14% YTD. Energy storage deployments reached 12.5 GWh, with Elon Musk’s xAI as a major customer.

Tesla shares fell over 4% after European sales data revealed a 23% year-over-year decline in August EV registrations, contrasting with a 26% rise in overall European EV market. RBC analysts remain optimistic, projecting strong Q3 deliveries driven by U.S. tax credit incentives. Despite a challenging start, Tesla’s stock is up 5% YTD. Analysts suggest Elon Musk’s political involvement might affect the brand. Tesla plans a more affordable model to counter increasing competition.