Tesla Posts Return to Revenue Growth, Though Profits Miss Estimates

Core Insights - Tesla experienced a return to revenue growth in Q3 2025, with a 12% year-over-year increase to $28.1 billion, driven by a surge in vehicle deliveries as buyers capitalized on expiring tax credits [1][2][7] - Despite the revenue growth, Tesla's adjusted earnings per share of $0.50 fell short of the consensus estimate of $0.54, attributed to higher costs from restructuring and investments in AI [3][7] - The company reported record-high global vehicle deliveries, indicating growth across all regions, following two consecutive quarters of decline due to backlash against CEO Elon Musk's political activities [1][2] Financial Performance - Tesla's revenue for Q3 2025 reached $28.1 billion, exceeding analysts' expectations [1][7] - The adjusted earnings per share of $0.50 missed the consensus estimate of $0.54 [3][7] - The stock was up approximately 9% for 2025 through the close of Wednesday, despite being down more than 1% in extended trading after the earnings release [4][5] Market Position - Tesla has underperformed compared to other stocks in the Magnificent 7, only outperforming Apple and Amazon this year [5] - The enthusiasm surrounding next-generation businesses like robots and robotaxis has contributed to the stock's recovery, but concerns about the car business persist [2][5]