Key Stats for Tesla Stock
- Price Change for $TSLA stock: -5.1%
- Current Share Price: $436
- 52-Week High: $488
- TSLA Stock Price Target: $345
What Happened?
Tesla (TSLA) stock dropped more than 5% on Thursday after the electric vehicle maker reported third-quarter delivery numbers that came in slightly above analyst expectations but still showed weakness in key markets.
The company delivered 497,099 vehicles in Q3, representing a 7% increase from the same period last year, but a decrease from the pace set in the second quarter.
Tesla’s quarter ended on the same day that the federal $7,500 EV tax credit expired in the United States as part of the One Big Bill spending legislation passed in July.
That credit had been driving a rush of purchases in the U.S. market as buyers hurried to lock in savings before the deadline.
Production actually fell during the quarter to 447,450 vehicles, down from 469,796 in Q3 of 2024. Most of those deliveries (435,826 units) came from Tesla’s core Model 3 and Model Y lineup. The company is scheduled to report full financial results on October 22.
On the energy storage side, Tesla deployed 12.5 gigawatt-hours of battery systems like its Megapack, up significantly from 6.9 GWh in the year-ago period. These products store renewable energy or shift electricity usage to off-peak hours.
See analysts’ growth forecasts and price targets for Tesla stock (It’s free!) >>>
What the Market Is Telling Us About Tesla Stock
The sell-off in Tesla stock suggests investors are worried about what comes next now that the tax credit is gone.
Year-to-date deliveries stand at roughly 1.2 million vehicles, down about 6% compared to the first three quarters of 2024. That’s not the growth trajectory Wall Street wants to see from a company trading at Tesla’s premium valuation.
Sales from Europe continue to slide due to a combination of consumer backlash against CEO Elon Musk’s political activism and stiffer competition from automakers like Volkswagen and BYD.
The U.S. market helped offset some of that weakness as buyers pulled forward purchases to capture the expiring tax credit, but that dynamic won’t repeat in Q4.
During the recent earnings call, Musk acknowledged the company could face “a few rough quarters” in Q4, Q1, and maybe Q2 as it navigates the transition period without tax incentives.
However, he remained bullish on the second half of next year, predicting that autonomous driving technology (Tesla’s robotaxi service launched in Austin during Q2) will dramatically improve the company’s economics.
Management emphasized that all Tesla vehicles are capable of full self-driving, which they argue is a massive differentiator from competitors.
The company’s vehicle safety report claims cars using FSD are 10 times safer than those without it. Still, only about half of Tesla owners who could use the feature have tried it even once, suggesting significant room for education and adoption growth.
Tesla stock had been on a strong run before this report, jumping 40% in the third quarter alone and turning positive for the year after a brutal start to 2025.
Investors will be watching the October 22 earnings call closely to see how management plans to navigate the post-subsidy environment and whether robotaxi revenue can materialize as quickly as Musk predicts.
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
Click here to sign up for TIKR and get our full report on 5 undervalued compounders completely free.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
