Tesla to report third-quarter earnings after record deliveries as electric car demand, robotaxi timeline face scrutiny

Analysts say Tesla reported third-quarter earnings on Oct. 22 after record deliveries, but is also under scrutiny for the slow pace of its ride-hailing service.

The Austin, Texas-based automaker could see lower margins after trimming its aging lineup in the quarter. Demand is likely to drop after September 30. the US EV tax credit will be eliminated.

“Tesla’s core electric car business is facing intensifying competition and slowing demand,” Zacks said on Oct. 20. “The third quarter results were solid, but largely reflected broader industry momentum.

The research firm noted that while Tesla’s third-quarter sales rose 7.4 percent from the year-ago period to 497,099 vehicles, nine-month sales fell 5.9 percent to just over 1.2 million.

Tesla reports financial results on October 22. after the market closed and after earnings were announced, usually led by CEO Elon Musk.

Tesla’s full-year sales are expected to fall to around 1.6 million, according to Visible Alpha estimates cited by Reuters. from 1.8 million Musk said the company’s revenue will grow from driverless robots and robotic humanoids.

Musk is expected to address delays in the rollout of Tesla’s robotaxi and development of the Optimus robot during earnings. Much of Tesla’s $1.5 trillion market value rests on those projects.

“Tesla could hit $2 trillion market cap in early 2026 under bull scenario and $3 trillion by 2026.” end of the year, when full-scale production of the autonomous and robotic roadmap will begin,” analyst Dan Ives of Wedbush Securities said on Oct. 19.

Sign up for the weekly Automotive News Mobility Report newsletter to learn about the latest developments at the intersection of transportation and technology.

The questions in the call for retail investors asked for more details on Tesla’s robotaxi pilot project in Austin that began in late June, and the ride-hailing service in the San Francisco Bay Area that began in July.

“What are the latest robotaxi metrics (fleet size, total miles, trips taken, intervention rates) and when will safety drivers be removed?” was the top-voted question on a site created to provide the data.

“Can you share the progress of robotaxi development?” was another top-voted question.

Musk said in July that he hopes to have fully autonomous robotaxis serving half of the U.S. population by the end of the year, but for now pilots in Texas and California are invite-only and still use human safety drivers.

Gene Munster of Deepwater Management, which like Ives rates Tesla stock, estimates that only 50 to 75 Tesla vehicles are being tested as a robot in the two states, down from 35 three months ago.

“Tesla is unlikely to provide specific numbers, but expect meaningful fleet expansion next year,” Munster said on Oct. 20. “It’s too early for Optimus to fundamentally change its approach to these earnings,” Munster said.

Another big question for retail investors is whether Tesla plans additional new models, including a compact car.

Tesla October 7 released cheaper versions of its Model Y crossover and Model 3 sedan with smaller batteries, fewer comfort features and sticker prices under $40,000 before delivery.

Musk first mentioned plans for a $25,000 vehicle — possibly a compact car — in 2020. a presentation that focused on reducing battery consumption. Tesla said it will ride on a new platform.

Later, Tesla shifted the focus of the company’s products to a dedicated autonomous vehicle that could be used in the company’s fleet of rides. Musk presented a two-seater Cybercab model a year ago, the production of which is scheduled for 2026.

Another topic likely to come up during earnings is Tesla’s proposed compensation package for Musk, which could reach $1 trillion if several milestones are met.

Shareholders could approve the package on November 6. meeting.

Reuters reported in mid-October that proxy advisory firms Glass Lewis and Institutional Shareholder Services, which guide large investors on how to vote at corporate meetings,

The product of the future

Find out what powertrains, redesigns and updates are planned for the next four years.

Check out the list

Brand future product terms

Have an opinion on this story? Tell us about it and we can get it published. Click here to submit a letter to the editor.

Leave a Comment