TSLA vs. F: Which Stock Holds an Upper Hand Post Q3 Earnings?

Core Insights - Ford surpassed earnings estimates for Q3 2025, while Tesla missed expectations despite record vehicle deliveries [1][9] - Tesla's operating income contracted by 40% year-over-year due to increased SG&A, R&D, and restructuring expenses [1][9] - Both companies are at critical junctures, with Tesla's shares rising 33% and Ford's shares increasing approximately 22% over the past three months [3] Tesla's Performance - Tesla delivered 497,099 vehicles in Q3 2025, marking a 7.4% year-over-year increase and setting a new quarterly record [4] - The increase in deliveries was likely influenced by a "pull forward" effect from the expiring $7,500 federal EV tax credit [4] - Tesla's Energy Storage segment achieved record deployments, becoming the most profitable division with the highest margins [6] - The company is focusing on autonomous vehicles and robotaxis as future growth areas, with plans to test robotaxis in multiple metro areas by year-end [10][11] Ford's Performance - Ford's vehicle lineup remains strong, with the F-Series on track to be America's best-selling truck for the 49th consecutive year [12] - The company holds approximately 70% of the hybrid truck market, reflecting consumer preference for hybrid options amid slowing EV adoption [13] - Ford's financial position is solid, ending Q3 2025 with $54 billion in liquidity, including $33 billion in cash [15] - The company is investing in long-term electrification through its Universal EV Platform, aiming to produce affordable EVs priced around $30,000 [14] Challenges and Outlook - Tesla faces challenges from maturing product lines, increased competition, and reduced pricing power, with margins under pressure from price cuts and higher costs [5] - Ford is dealing with near-term challenges due to a fire at the Novelis aluminum plant, which is expected to impact EBIT by $1.5–$2 billion in Q4 2025 [16] - Despite these challenges, Ford's diversified portfolio and strong execution position it as a relatively stronger investment compared to Tesla at this stage [21][24]