Tesla (NASDAQ:TSLA) traded lower in postmarket action despite delivering record quarterly revenue with its Q3 earnings report. Investors seemed to be focused on the drop in margins from a year ago, despite the surge of deliveries ahead of the expiration of the EV tax credit.
During the earnings conference call, Elon Musk said Tesla (NASDAQ:TSLA) is at a critical inflection point as it brings AI into the real world. He called Tesla (TSLA) a clear leader in AI and just at the beginning of scaling autonomy, robotaxi, and Optimus. “We look forward to unveiling Optimus V3 in Q1, 2026. It won’t seem like a robot but a human in a suit,” he highlighted. He hinted that the Optimus humanoid robot could be an “excellent” surgeon someday and thinks the company can help with access to the finest healthcare for all.
Musk also highlighted that Tesla (TSLA) is making a huge impact in the energy sector. Tesla (TSLA) battery packs are seen boosting the energy output of the U.S. grid as a whole.
During the question and answer part of the call, Musk said robotaxi rides in Austin without safety drivers should start before the end of the year, but the company is still being cautious. Musk said Tesla (TSLA) expects its robotaxis to be in 8 or 10 metro areas before the end of the year.
Weighing in on the report, Seeking Alpha analyst Geneva Investor said he sees Q3 as transitional. The revenue beat was seen as a surprise given expected tailwinds. Despite the EPS miss, Tesla’s gross margin rate improving on a quarterly basis and the energy segment growing at 44% were seen as positives. “For me, Tesla remains a long-term story. I think investors should expect volatility ahead and have to believe in Musk’s long-term vision to stay invested,” read the post-earnings appraisal.
Meanwhile, Jonathan Weber, Investing Group Leader for Cash Flow Club, noted that Q3 was a strong quarter delivery-wise, as Tesla (TSLA) was able to turn the deliveries increase into a solid revenue increase. “On the earnings side, however, things didn’t look great, with margins down despite record deliveries,” he added. Weber noted that TSLA is trading at a very high valuation, while Q4 will likely be significantly worse than Q3 due to demand being pulled forward thanks to subsidy changes in the U.S. The takeaway from Weber is that Tesla (TSLA) does not seem like an attractive investment at current prices.
Shares of Tesla (TSLA) were down 4.8% in postmarket trading. The stock moved lower during the course of the earnings call.