4 Reasons to Buy Tesla Stock and 1 Reason Not To

Core Insights - Tesla is regaining attention ahead of its earnings report on Oct. 22, following a significant sell-off and record quarterly deliveries, raising questions about whether the recent pullback presents a buying opportunity [1] Group 1: Automotive Business Performance - Tesla delivered approximately 497,100 vehicles in Q3, marking a new quarterly record and a year-over-year growth of about 7%, reversing two consecutive quarters of decline [4] - The Q3 deliveries exceeded analysts' consensus forecast of around 448,000 vehicles, indicating strong demand despite the expiration of a key $7,500 U.S. electric vehicle credit [5] Group 2: Energy Business Growth - Tesla's energy storage business achieved a record deployment of 12.5 gigawatt hours (GWh) in Q3, significantly surpassing the 9.6 GWh in Q2 2025 and 6.9 GWh in Q3 2024 [6] - This segment is generating substantial gross profit and is expected to continue growing as a percentage of overall revenue [7] Group 3: Market Dynamics and Future Prospects - The expiration of the $7,500 federal electric vehicle credit on Sept. 30 may impact Q4 demand, but Tesla's post-COVID-19 price cuts have made its vehicles more accessible [8] - The introduction of a lower-priced model and a refreshed Model Y could enhance Tesla's market appeal as incentives diminish, while potential revenue from robotaxi and software services may provide higher margins over time [9]