Tesla earnings: Wall Street insiders talk reasons to be bullish and bearish

Financial Performance - Tesla's Q3 adjusted EPS was $0.50, versus consensus at $0.54 [1] - Tesla's Q3 revenue was $28.10 billion, beating the street's expectation of $26.36 billion [1] - Q3 gross margins were better than expected [1] - Q3 free cash flow was $3.99 billion, beating the estimate of $1.25 billion [2] EV Market and Demand - The expiration of EV tax credits in the US may lead to a decline in Q4 deliveries and overall deliveries in 2026 [49] - Tesla's EV sales potential is estimated to be around 1.9 million units per year [6] - Analysts estimate Tesla is looking at more like 1.6 million cars next year [7] - Tesla released two models under $40,000, but they may still be more expensive than comparable midsize SUVs [51][52] Autonomous Driving and Robotics - The autonomous valuation is believed to be worth $1 trillion alone to the Tesla story over the next few years [55] - Tesla aims to transition from selling cars to software and robotics in the future [56] - The success of Tesla's robo taxi business depends on the software's functionality, safety, and regulatory approvals [60] - Analysts predict that in 2-3 years, it will become commonplace to have robots in houses [35] Executive Compensation and Governance - Shareholders are expected to approve Elon Musk's potential $1 trillion pay package [62][63] - The pay package incentivizes Elon Musk to grow Tesla's market cap to a maximum of $8.5 trillion and successfully roll out robo taxis and Optimus robots [63]