2 Charts That Show Why Tesla Is Still in Trouble

Core Insights - Tesla reported a record number of deliveries in Q3, with unit sales rising to 497,099, a 7% increase year-over-year and a 29% increase from the previous quarter [1] - Despite the strong delivery numbers, investors were underwhelmed by the overall financial performance [1] Financial Performance - Overall revenue increased by 12% to $28.1 billion, surpassing the consensus estimate of $26.7 billion [2] - Automotive revenue rose 6% to $21.2 billion, while energy generation and services showed stronger growth [2] - Gross profit only increased by 1% to $5.1 billion, leading to a decline in gross margin from 19.8% to 18% [3] - Operating income fell 40% to $1.6 billion, which included a $238 million restructuring charge [3] - Adjusted earnings per share (EPS) decreased from $0.72 to $0.50, missing estimates of $0.56 [3] Future Outlook - CEO Elon Musk has been focusing on the company's transition to autonomy, including self-driving vehicles and the Optimus robot [5][6] - Tesla plans to launch fully autonomous Cybercab production in 2026, along with the Tesla Semi and Megapack 3 for energy storage [7] - First-generation production lines for Optimus robots are being installed, with management emphasizing the potential of AI across its product portfolio [7] Market Position - Despite record deliveries, Tesla's profitability has sharply declined, and the company continues to lose market share in the EV segment [9][10] - The current valuation is considered inflated based on future promises rather than present performance [9]