Tesla earnings preview: What investors need to know

Core Insights - The company reported Q3 revenue of $26.27 billion, an increase of nearly $1 billion year-over-year, with adjusted EPS at $0.53 and EBITDA estimated at $3.78 billion [1] - A record of 497,000 electric vehicles (EVs) were sold in Q3, attributed to the expiration of the EV tax credit, which led to higher-than-expected sales [1] - The company is set to release cheaper versions of the Model Y and Model 3 in the next quarter, which is anticipated to further boost sales [2] Energy Products and AI Developments - Record deployments of energy products were noted, contributing positively to the company's high-margin business [2] - The company is shifting its AI training efforts to utilize Nvidia chips instead of its own Dojo supercomputer for robo-taxi developments [3] Market Performance in China - There are signs of improvement in Tesla's market performance in China, with positive production numbers from the Shanghai Gigafactory [4] - The new extended version of Model Y has gained popularity in China, indicating strong registration numbers [5] - The brand perception of the company in China is more favorable compared to the U.S., with Elon Musk viewed positively as an entrepreneur [5] - The Shanghai Gigafactory is noted as the most productive factory, supplying vehicles globally, which may provide a tailwind for the company [6]