is set to report a sharp rise in third-quarter revenue, driven by a wave of U.S. buyers rushing to purchase vehicles before the $7,500 electric vehicle tax credit expired. Analysts expect the EV maker to post $26.24 billion in revenue, up 4.2% from last year, though thinner margins are weighing on sentiment.
CEO Elon Musk faces pressure to convince investors that Tesla’s lower-cost “Standard” trims of its Model 3 and Model Y can maintain momentum despite reduced profit per car. The new models are cheaper by about $5,000, reflecting Tesla’s strategy of cutting costs and features to stay competitive.
However, those price cuts — combined with heavy global discounting — have eroded profitability, with analysts projecting automotive gross margins of 15.6%, compared with 17% a year ago.
Musk is also expected to provide an update on Tesla’s robotaxi project, which he says will transform the company’s future. Investors are eager for concrete details on rollout timelines and coverage areas, especially as Tesla’s valuation continues to rely heavily on its AI and self-driving ambitions rather than car sales alone.
Tesla’s stock, down 1% on Wednesday, has gained about 10% in 2025, lifted by a proposed $1 trillion pay deal for Musk and hopes that new models can reignite demand. Still, analysts remain cautious amid slowing sales and political backlash in key markets.
