Tesla (NASDAQ:TSLA) is a leading manufacturer and supplier of electric vehicles and energy storage solutions, with numerous future projects planned, including autonomous robotaxis and robotics. Trading volume reached 105 million shares, coming in nearly 22% above its three-month average of 85 million shares. The stock closed at $467.26, down 4.6% on the day. Wednesday’s trading saw Tesla retreat from recent record highs after California’s DMV actions against its “Autopilot” branding raised fresh regulator ...

Core Insights - Tesla's recent earnings report highlighted CEO Elon Musk's ambitious future plans, including a "robot army" and autonomous vehicle technology, overshadowing the current car-making business [1] - The company's Q3 performance raises concerns about the sustainability of funding future technologies through vehicle sales, as low margins could jeopardize these plans [2] Financial Performance - Tesla's operating margin fell significantly from 10.8% in Q3 2024 to 5.8% in Q3 2025, indicating a decline in profitability compared to competitors like Microsoft and Meta, which have margins of 44.9% and 43% respectively [6][7] - In Q3, Tesla reported record revenue of $28.1 billion, with costs of revenue at $23 billion, resulting in a gross profit of $5.1 billion and an operating profit of $1.6 billion after accounting for $1.6 billion in R&D expenses [7] Future Outlook - Despite record revenue, Tesla's low margins are expected to decline further, with projections indicating a potential drop in overall sales due to the expiration of the U.S. government's $7,500 EV tax credit [10] - The introduction of lower-priced versions of the Model 3 and Model Y, which accounted for 96.8% of Q3 sales, is likely to further impact gross profits, with expectations of a significant reduction in Q4 [10]