Tesla (TSLA) stock went on a tear to end the third quarter, erasing early 2025 losses as investors bet on the firms AI-related ambitions. A strong sales quarter and a detente between CEO Elon Musk and former BFF President Trump also helped, but the question remains whether Teslas sky-high valuation will continue to defy gravity.
Teslas Q3 earnings report, slated for release on Wednesday after the bell, comes with the SP 500 (^GSPC) and Nasdaq (^IXIC) within striking distance of new highs. The broader market has shaken off Trumps unpredictable tariff war, though fears of an economic slowdown in the US persist. Plus, auto sector tariffs of 25% on imported cars and parts are still in place, hurting domestic automakers.
The focus for Tesla is on what happens as a result of the expiration of the federal EV tax credit and the companys robotaxi ambitions.
For the quarter, Tesla is expected to report Q3 revenue of $26.27 billion (per Bloomberg estimates), a 4% jump from the $25.18 billion reported a year ago. From a profitability standpoint, the Street is expecting adjusted earnings per share (EPS) of $0.53, translating to EBITDA of $3.78 billion.