Tesla(US:TSLA) Zheng Quan Shi Bao·2025-10-23 00:07Core Viewpoint - Tesla's stock experienced a significant drop after the release of its Q3 earnings report, which showed a revenue increase but a substantial decline in operating profit and adjusted earnings per share, leading to concerns about future performance in the broader market [1][2]. Financial Performance - Tesla reported Q3 revenue of $28.095 billion, a 12% year-over-year increase, exceeding analyst expectations of $26.36 billion [2][6]. - Operating profit fell to $1.624 billion, a 40% decrease year-over-year, and below the expected $1.65 billion [2][5]. - Adjusted earnings per share were $0.50, down 31% year-over-year and below the forecast of $0.54 [2][5]. - Adjusted net profit was $1.77 billion, a 29% decline compared to the previous year [2]. Business Segments - The automotive segment generated $21.205 billion in revenue, a 6% increase year-over-year, but the gross margin for this segment dropped to 15.4%, below the expected 16.3% [6][5]. - Tesla's energy storage business saw revenue of $3.415 billion, a significant 44% increase year-over-year, marking a record deployment for the 13th consecutive quarter [7]. Market Impact - Following the earnings report, Tesla's stock fell nearly 5% in after-hours trading and closed down 0.82% on the following day [1][2]. - Broader market indices also declined, with the Dow Jones down 0.71%, S&P 500 down 0.53%, and Nasdaq down 0.93%, influenced by disappointing earnings from other companies like Netflix and Texas Instruments [1]. Future Outlook - CEO Elon Musk indicated that the increase in revenue was partly driven by a surge in deliveries due to expiring tax credits, raising concerns about future sales growth [8]. - Tesla acknowledged that increased operating expenses related to AI and other projects, along with rising costs from tariffs and changes in sales mix, contributed to the decline in net profit [8][9]. - Musk announced plans to release the next version of the Optimus robot in Q1 and emphasized the collaboration with TSMC and Samsung for AI chip development [9][10].