Tesla(US:TSLA) EBSCN·2025-10-23 11:57Investment Rating - The report maintains a "Buy" rating for Tesla, indicating a positive outlook for the company's stock performance in the coming months [4]. Core Insights - Tesla's total revenue for Q3 2025 reached $28.1 billion, showing a year-over-year increase of 11.6% and a quarter-over-quarter increase of 24.9%. However, the Non-GAAP net profit was below market expectations, primarily due to tariff impacts on margins, increased operating expenses, and reduced high-margin income from credits and one-time FSD revenue [1][2]. - The automotive business saw a global delivery increase of 7% year-over-year and 29% quarter-over-quarter, totaling 497,000 vehicles delivered. The automotive revenue was $21.21 billion, with an average selling price (ASP) of approximately $42,000 [2]. - The energy storage business demonstrated significant growth, with installed capacity increasing by 81% year-over-year and 30% quarter-over-quarter, leading to revenue of $3.42 billion and a gross margin of 31.4% [2]. Summary by Sections Financial Performance - Q3 2025 total revenue was $28.1 billion, with a gross margin of 18.0%. Non-GAAP net profit was $1.77 billion, reflecting a year-over-year decline of 29.3% [1]. - The automotive business generated $21.21 billion in revenue, with a gross margin of 15.4% after excluding credit income [2]. - The energy storage segment achieved $3.42 billion in revenue, with a gross margin of 31.4% [2]. Strategic Developments - Focus has shifted towards AI-driven initiatives, including Robotaxi and humanoid robots. Elon Musk's recent stock purchases and the board's plan to grant stock options based on performance metrics highlight the company's commitment to these technologies [3]. - The rollout of new Model 3/Y configurations is expected to drive sales growth, particularly in China, which remains a key market for Tesla [2]. Future Projections - The report projects a slight decrease in Non-GAAP net profit for 2025 and 2026, with estimates of $6.0 billion and $8.7 billion, respectively. However, a significant increase is anticipated for 2027, with a projected net profit of $12.08 billion [4][5].