Tesla Posts Return to Revenue Growth, Though Q3 Profits Miss Estimates

Core Insights - Tesla's revenue grew by 12% year-over-year to $28.1 billion in the third quarter, exceeding analysts' expectations, driven by a surge in vehicle deliveries as buyers capitalized on expiring tax credits [2][4] - The company reported a record high in global vehicle deliveries, indicating growth across all regions, following two consecutive quarters of decline due to backlash against CEO Elon Musk's political activities [2][3] - 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 restructuring costs and investments in AI [4][6] Financial Performance - Tesla's shares increased approximately 9% for 2025 through Wednesday's close, recovering from a year spent largely in negative territory [1][5] - The company has underperformed compared to other stocks in the Magnificent 7, with only Apple and Amazon showing worse performance this year [5][6] Future Outlook - Tesla's upcoming products, including Cybercab, semi truck, and Megapack 3 battery, are on schedule for volume production next year, alongside the installation of production lines for Optimus robots [4][6] - Enthusiasm surrounding next-generation businesses like robots and robotaxis has contributed to the stock's recovery, although concerns about the core car business persist [3][6]