Tesla’s Q3 Wasn’t Bad — But Is Now the Time to Buy TSLA Stock?

Core Insights - Tesla reported its third-quarter financials, achieving record highs in vehicle deliveries and free cash flow, but its adjusted earnings fell short of market expectations [1][4] Financial Performance - Tesla delivered record vehicle volumes globally, with automotive revenue increasing by 6% year-over-year and 29% sequentially, driven by strong demand for the Model Y [3] - The company's total revenue and free cash flow reached new highs, supported by higher deliveries and energy storage deployments [3] - Adjusted earnings fell 31% from the prior year, primarily due to a decline in regulatory credit revenue and increased costs per vehicle [4] Market Reaction - Despite strong operational metrics, TSLA stock traded lower in the morning session, indicating investor disappointment over the earnings miss and lack of short-term guidance [2] External Factors - The expiration of the U.S. federal EV tax credit of $7,500 in September likely contributed to the record deliveries, as customers rushed to purchase vehicles before the incentive ended [5] - Broader market uncertainties, including fluctuating demand and evolving trade dynamics, have left investors uncertain about Tesla's future performance [2] Product Development - Tesla launched several new automotive and energy products, including the Model YL and Model Y Performance, and expanded its affordable vehicle lineup with the Model 3 and Model Y Standard [6]