RT Sawyer Merritt (@SawyerMerritt)Morgan Stanley's Adam Jonas in new $TSLA note: "I'm callin' it. Autonomous cars are solved. Do I mean six or seven 9's to the right of the decimal? No. Perfection? Never. But enough to pull the safety driver at scale in major metros.""From our discussions with @Tesla, it appears the only thing preventing Tesla from pulling the driver is its own abundance of caution. Our understanding is that there is no other explicit regulatory approval required to pull drivers in Texas. A ...

Core Insights - Elon Musk's tweet in November 2015 initiated a significant shift in Tesla's future by calling for the ramp-up of the Autopilot software team, leading to the establishment of a dedicated team for full autonomy [2][3] - Ashok Elluswamy, who responded to Musk's tweet, became the first engineer on Tesla's Autopilot team and now leads Tesla's AI and Autopilot division, showcasing the evolution of Tesla's software capabilities from basic functions to advanced real-time decision-making [3][4] - Tesla's growth has been predominantly organic, with Musk emphasizing that approximately 90% of its strengths were developed internally rather than through acquisitions, highlighting the company's unique approach to building its AI capabilities [4] Importance to Investors - The story of Elluswamy's journey from a tweet to leading Tesla's AI division signals the company's evolving competitive advantage, especially as rivals like Waymo and Mercedes rely on partnerships and acquisitions for advancements in autonomy [5] - If full self-driving technology becomes a major profit driver for Tesla, Musk's 2015 tweet could be seen as a pivotal investment that laid the groundwork for Tesla's future valuation [6]

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]

Now, Jed Dorschimer, William Blair analyst, joins us now. He has a market perform rating on Tesla. Um, Jed, what did you make of uh the bottom line here and what do you think it does for investors confidence and and willingness to keep funding autonomous and uh robots.>> I'm still laughing by the hanky panky thing, but uh anyways, I think on Tesla, you know, this this was kind of a you know, this was not a salacious quarter for Tesla. You know, I think um >> you know, on the positive side, Elon called out o ...

Core Viewpoint - Tesla's recent quarter results did not present any major surprises, with a focus on energy storage and autonomy as key drivers for future growth and profitability [2][4][10] Financial Performance - Energy storage contributes 15% of Tesla's business but accounts for 25% of its profit, providing a buffer for the automotive segment which may face challenges [3][7] - The automotive segment showed better-than-expected profitability due to the retention of regulatory credits, contrary to expectations of their expiration [4][6] Market Dynamics - Anticipation of tax credits expiring led to a surge in demand, with nearly 500,000 units sold this quarter, but a decline to 400,000 units is expected in the next quarter [5] - Regulatory credits have only decreased by about 5%, which is unexpected and could positively impact margins if they remain stable [6] Future Growth Opportunities - The energy storage business, while currently a smaller segment, is seen as a long-term growth opportunity, contributing to profitability amidst rising electricity prices [7][8] - Autonomy remains the primary driver for Tesla's valuation, with an estimated $300 of the stock's value attributed to this segment [10]

RT Tesla Owners Silicon Valley (@teslaownersSV)Tesla does u turn and parks inside a McDonald’s parking lot.Tesla FSD 14.1.3 is human like and a step closer to autonomy https://t.co/dwFS2GBRpj ...

Summary of Tesla Inc 3Q Results Conference Call Company Overview - **Company**: Tesla Inc - **Industry**: Autos & Shared Mobility - **Market Cap**: $1,544,735 million - **Stock Rating**: Overweight - **Price Target**: $410.00 - **Current Price (as of October 22, 2025)**: $438.97 - **52-Week Range**: $488.54 - $212.11 Key Financial Highlights - **3Q Revenue**: $28,095 million, slightly above consensus by 0.9% and Morgan Stanley estimate by 0.2% [7] - **Automotive Revenue**: $21,205 million, 2.3% above consensus and 3.4% above Morgan Stanley estimate [9] - **Free Cash Flow (FCF)**: $4 billion, significantly above consensus by 3 times [1][7] - **Gross Margin**: Total gross margin at 18.0%, with automotive gross margin at 17.0% [9] - **Net Income**: GAAP net income of $1,373 million, down 15.2% from consensus [9] - **Adjusted Net Income**: $1,832 million, down 11.8% from consensus [9] - **Diluted EPS**: GAAP EPS at $0.39, down 15.2% from consensus [9] Strategic Insights - **Transition to Recurring Revenue**: Automotive revenue is projected to account for only 75% of total revenues as Services/Other and Energy segments grow, with Services/Other up 25% YoY and Energy up 44% [7] - **Robotaxi Development**: Anticipation of removing safety drivers for robotaxi by 1Q26, indicating faster progress than expected [7] - **Full Self-Driving (FSD) Approval**: Potential approval in Europe and China could unlock significant margins, estimated at 90% for FSD subscriptions [7] - **Optimus Production**: Investors are eager for updates on Optimus production and operations within Tesla factories [7] Risks and Considerations - **Competition**: Facing competition from legacy OEMs, Chinese players, and big tech [13] - **Execution Risks**: Challenges related to multiple factory ramps and geographic penetration [13] - **Market Recognition**: Concerns that the market may not recognize the potential of Dojo-enabled services operations [13] - **China Risk**: Ongoing geopolitical and operational risks associated with the Chinese market [13] Analyst Commentary - **Market Reaction**: Overall reaction to earnings was largely unchanged, with financial results aligning with consensus expectations [1][7] - **Future Outlook**: Analysts remain focused on Elon Musk's ability to innovate and maintain Tesla's competitive edge in autonomy amidst increasing competition [1] Conclusion Tesla Inc's 3Q results reflect a strong free cash flow and a strategic shift towards diversified revenue streams, although challenges remain in terms of competition and execution risks. The company's future growth will heavily depend on advancements in autonomous driving technology and the successful rollout of new products and services.

Core Insights - The investment case for Tesla hinges on its future potential, supported by significant liquidity of $41 billion, which is notably higher than GM and Ford's $23 billion each [2][4]. - The incremental miles driven for Full Self-Driving (FSD) remained stagnant at approximately 1.1 billion in September, indicating a potential inflection point that has yet to materialize [3]. - The stock is currently trading at a revenue multiple of about 13, which is higher than Apple's 9, suggesting that traditional valuation methods may deem Tesla overvalued [7][8]. Financial Position - Tesla's cash reserves increased by $4 billion sequentially, reaching $41 billion, providing ample liquidity for future investments [1][2]. - The company is positioned to leverage its financial strength to pursue growth opportunities, particularly in the realm of autonomous driving and electric vehicles [4][6]. Market Dynamics - The investing community is accustomed to volatility and unmet expectations from Tesla, particularly regarding FSD timelines, which may affect stock performance [5]. - The potential expansion of robo-taxi services in additional cities could serve as a significant catalyst for stock price movement [6]. Growth Potential - Analysts suggest that Tesla could experience multiple years of high growth, with projections of 30-40% growth if it successfully capitalizes on its technological advancements [9]. - The current market environment for Tesla is characterized as uncharted territory, with no historical valuation support, yet the company is seen as a leader in autonomy [10].

Core Insights - Tesla's margin erosion reflects a shift in its business model, relying on pricing incentives to drive volume as the $7,500 U.S. EV tax credit expired [1][2] - The company reported a net income drop of approximately 37% year-over-year to $1.4 billion, with gross margin at around 18%, down from nearly 19.8% a year ago [4][5] - Tesla's automotive gross margin, excluding regulatory credits, was around 15.4%, indicating sliding core profitability despite increased vehicle sales [7][10] Financial Performance - Tesla achieved $28.1 billion in revenue, a 12% increase from the previous year, and delivered 497,099 vehicles, the highest in its history [5] - Adjusted EPS was $0.50, missing the expected $0.55, while operating expenses surged by 50% due to investments in software and next-gen manufacturing [3][4] - Free cash flow reached a record $4 billion, with $41.6 billion in cash and investments at the end of the quarter [5] Production and Deliveries - Production totaled approximately 447,450 units, resulting in a 50,000-car gap between output and deliveries, the widest since early 2023 [1] - Deliveries increased by 33% in China and 28% in North America, although some growth was attributed to the expiring tax credits [8] Strategic Initiatives - Tesla plans substantial capital expenditure increases in 2026 to fund AI and robotics expansion, indicating a long-term focus despite near-term margin pressures [2] - The company is advancing its AI initiatives, with Musk stating that Tesla has reached a "critical inflection point" in integrating AI into its operations [13] Energy Segment - Energy generation and storage revenue climbed 44% to $3.42 billion, with gross profit hitting a record $1.1 billion, showcasing the potential of Tesla's energy segment [21][22] - The company is positioning its energy products as critical to national infrastructure, with expectations for continued growth despite competitive pressures [19][22] Future Outlook - Musk emphasized the importance of scaling AI and robotics, with plans for a robotaxi rollout and the development of a humanoid robot, Optimus [14][17] - The company is navigating a complex landscape of margin compression and operational challenges while pursuing ambitious long-term goals [23][24]

How your Tesla cleans its front-facing cameras with FSD Supervised V14Yun-Ta Tsai (@YunTaTsai1):As autonomy capability increased, camera self cleaning becomes part of the critical equation.To remove the soiling while vehicle is moving, we need to retain enough water in a very small area with high sweeping torque in a very short period of time. All of this has to be done ...