Tesla (NASDAQ:TSLA) fell slightly in after-hours trading on Wednesday after releasing its Q3 earnings report.
The electric vehicle giant reported revenue was up 11.6% year-over-year in Q3 to $28.1 billion. EPS came in at $0.50 vs. $0.56 consensus and $0.62 a year ago. GAAP net income for the quarter was $1.4 billion, and non-GAAP net income was $1.8 billion.
Operating margin was reported at 5.8% of sales, falling sharply from last year’s mark of 10.8% but improving on a sequential basis. Total GAAP gross margin was 18.0% vs. 19.8% a year ago and 17.2% in the prior quarter.
Adjusted EBITDA was $4.23 billion vs. $4.67 billion a year ago. For the quarter, the EV juggernaut’s adjusted EBITDA margin fell to 15.0% of sales from 18.5% a year ago. Free cash flow of $3.99 billion was recorded vs. $1.25 billion consensus.
Tesla (NASDAQ:TSLA) delivered 497,099 vehicles in the third quarter as buyers rushed to capitalize on the end of the $7,500 government tax credit. The company produced 447,450 vehicles during the quarter. By model, Tesla (TSLA) produced 435,826 of the Model Y and Model 3, delivering 481,166 of the two vehicles. For comparison, Tesla (TSLA) reported 336,681 vehicle deliveries for Q1 of 2025, 384,122 vehicles in Q2 of 2025, and 462,890 deliveries for Q3 of 2024.
The company said energy storage deployments rose to a record level.
On the balance sheet, Tesla (TSLA) ended the quarter with a cash position of $41.6 billion.
Outlook: “While we face near-term uncertainty from shifting trade, tariff, and fiscal policy, we are focused on long-term growth and value creation. We are prudently making the necessary investments in our business, including future business lines, that we believe will drive incredible value for Tesla and the world across transport, energy, and robotics… While we continue to execute on innovations to reduce the cost of manufacturing and operations, over time, we expect our hardware-related profits to be accompanied by an acceleration of AI, software, and fleet-based profits.”
Tesla (TSLA) will hold an earnings conference call at 5:30 p.m.
Shares of Tesla (TSLA) were down 0.8% following the earnings release. Other auto stocks that have reacted in the past to Tesla’s (TSLA) report include NIO (NIO), General Motors (GM), Ford Motor (F), Rivian Automotive (RIVN), and Lucid Group (LCID).
ETFs that are leveraged to Tesla’s (TSLA) share price include the Direxion Daily TSLA Bull 2X Shares (TSLL) ETF, GraniteShares 2x Long Tesla Daily ETF (TSLR), ProShares Ultra TSLA ETF (TSLI), and Simplify Volt TSLA Revolution ETF (TESL). Other ETFs with a high weighting of Tesla (TSLA) include Global X Purecap MSCI Consumer Discretionary ETF (GXPD), Grayscale Bitcoin Adopters ETF (BCOR), the Fidelity MSCI Consumer Discretionary Index ETF (XLY), and the Fidelity MSCI Consumer Discretionary Index ETF (FDIS).