Tesla(US:TSLA) Sou Hu Cai Jing·2025-10-23 11:28Core Viewpoint - Tesla's Q3 2025 results showed record revenue and delivery numbers, but profitability declined, leading to a drop in stock price, reflecting market disappointment over the "revenue without profit" situation [2][25][26] Financial Performance - Q3 2025 revenue exceeded expectations at $26.37 billion, with a year-on-year increase in automotive sales revenue of 8.11% to $20.36 billion [8][9] - Despite record deliveries of 497,100 vehicles, earnings per share were only $0.50, below the market expectation of $0.54, contributing to stock price decline [8][9] - Automotive gross margin decreased by 1.69 percentage points to 14.71%, attributed to a higher sales volume of lower-priced models [5][9] - Free cash flow reached approximately $4 billion, with total cash and investments exceeding $41 billion [9] Delivery and Market Performance - Model 3/Y deliveries grew by 9.36% year-on-year to 481,200 units, with overall vehicle deliveries up 7.39% [5][8] - Significant regional delivery growth was noted in Greater China (33%), Asia-Pacific (29%), North America (28%), and Europe, Middle East, and Africa (25%) [5] - The surge in deliveries was partly driven by U.S. consumers rushing to purchase vehicles before the federal EV tax credit expiration [5][10] Strategic Initiatives and Future Outlook - CEO Elon Musk outlined ambitious plans for a production capacity of 3 million vehicles annually and the introduction of a new model without a steering wheel [3][11] - Tesla is focusing on localizing battery and powertrain supply chains globally, with new models expected to mitigate the impact of the expiring EV tax credits [10][11] - The company is also advancing its AI and robotics initiatives, with plans to produce 1 million units of the Optimus robot annually [13][19] Energy and Service Business - Tesla's energy storage deployment reached record levels, with a year-on-year revenue increase of 43.73% to $3.42 billion, contributing significantly to overall profitability [6][22] - The service and other segments also performed well, with a revenue increase of 24.55% to $3.48 billion [8][22] - New products like the Megablock are expected to enhance the energy storage business and meet growing demand [24] Market Sentiment and Challenges - The market appears to be recalibrating its expectations, weighing short-term profitability challenges against long-term growth potential in AI and robotics [25][26] - The end of the federal EV tax credit and the impact of previous policies are seen as short-term headwinds for Tesla's growth [3][25]