Tesla(US:TSLA)2025-10-23 02:06Summary of Tesla Inc. (TSLA) 3Q25 Earnings Call Company Overview - Company: Tesla Inc. (TSLA) - Quarter: 3Q25 Key Financial Results - Total Revenue: $28,095 million, up 25% quarter-over-quarter (qoq) and up 12% year-over-year (yoy) [2][4] - Automotive Revenue: $21,205 million, up 27% qoq and up 6% yoy [2][4] - Vehicle Deliveries: Approximately 497,000 vehicles, up 29% qoq and up 7% yoy [4] - Model 3/Y Deliveries: Approximately 481,000, up 29% qoq and up 9% yoy [4] - Non-GAAP Diluted EPS: $0.50, below Goldman Sachs estimate of $0.62 and Street estimate of $0.56 [7][11] Segment Performance - Automotive Gross Margin: 15.4%, slightly below Goldman Sachs estimate of 15.7% and FactSet consensus of 16.3% [3][5] - Total Company Gross Margin: 18.0%, above Goldman Sachs estimate of 17.3% and Street consensus of 17.5% [4][5] - Energy Generation and Storage Revenue: $3,415 million, up 22% qoq and up 44% yoy [10] - Service and Other Revenue: $3,475 million, up 14% qoq and up 25% yoy [10] Cost and Operational Metrics - Cost per Vehicle: Decreased to approximately $35.7K from $35.9K in 2Q25, but up from $35.1K in 3Q24 [5] - Operating Expenses (GAAP): $3.43 billion, higher than the estimated $3.05 billion, partly due to $238 million in restructuring costs [6] Cash Flow and Inventory - Free Cash Flow (FCF): $3,990 million, below the estimated $4.9 billion [8] - Cash and Cash Equivalents: Increased by $4.9 billion qoq to $41.6 billion [8] - Inventory: Decreased by $2.3 billion qoq to $12.3 billion [8] Forward Guidance and Strategic Outlook - Production Goals: On track for volume production of Cybercab, Tesla Semi, and Megapack 3 by 2026 [9] - AI Initiatives: Progress on AI-enabled efforts such as robotaxis, Full Self-Driving (FSD), and Optimus will be crucial for stock performance [3] Risks and Price Target - Price Target: $425, with a Neutral rating [11] - Key Risks: Include potential vehicle price reductions, increased competition in EVs, tariff impacts, and operational risks associated with vertical integration [12] Additional Insights - Regulatory Credits: Sales of regulatory credits were $417 million, down from $439 million last quarter and $739 million in 3Q24 [2] - Market Context: The shifting global trade and fiscal policies complicate the assessment of supply chain impacts [9]