The market reaction was swift: Tesla shares they retreated strongly after its quarterly accounts were released, with falls of around 5% in the first bars of the session. The balance sheet combined a revenue increase with lower-than-expected profit and EPS, fueling investor caution.
Although revenue beat consensus, the focus remained on the pressure on profitability and the tone of the analyst call, marked by references to AI and robotics. The idea that the growth narrative In the long term, it is currently colliding with weaker profit metrics.
What happened in the quote
After the closing of the previous day, the company published results and, when Wall Street opened, the title reached around US$416 with declines close to 5%. Later, and according to real-time market data, the stock moderated some of its losses but remained in the red, with declines of around 3% in the middle of the day. Despite the blow, the stock has accumulated more than a 100% increase in 12 months.
The figures for the quarter
The company reported revenues close to US$28,1 billion (above market estimates), but an adjusted earnings per share of US$0,50, lower than the approximately US$0,54 that analysts expected. Net profit was around US $ 1.400 million, 37% less than a year earlier.
In its automotive division, revenues advanced to around US$21,2 billion (+6% year-on-year), while at the operational level the company highlighted a slight improvement in gross margin. Production reached 447.450 units and the deliveries 497.099, with widespread geographic growth.
What the company said and its roadmap
During the earnings call, Elon Musk put the emphasis on the projects of artificial intelligence and robotics, with mentions of Optimus and the robotaxi vision. He noted that the next-generation AI chip (AI5) will be manufactured by Samsung and TSMC, and reiterated that Tesla will continue to use Nvidia solutions for model training.
On the product front, the company indicated that the Cybercab, the Semi and the Megapack 3 are on track to ramp up production next year, while first-generation lines for Optimus are being installed. In the short term, Tesla acknowledges regulatory and tariff uncertainty and maintains its focus on selective investments to sustain its long-term growth.
The call also left some friction with voting advisory firms, which Musk harshly criticized in the context of his compensation package, a matter that remains under shareholder scrutiny.
Analysts' reaction
The report was met with mixed reviews. Morgan Stanley notes that it is difficult to justify the current valuation with fundamentals, and that margin improvement does not resolve the long-term debate about software, energy and AI. Wells Fargo stresses that the market no longer values Tesla as a conventional car company and that a logic of growth history prevails.
The recommendation mosaic shows 46% of purchases, 27% hold and 27% sell, with an average 12-month target price of around US$369,77, which would imply a potential fall from recent levels. JPMorgan maintained its critical stance with a target of US$150, while Deutsche Bank, more balanced, warns of overly optimistic expectations on margins and deliveries.
On the constructive side, Wedbush reaffirms its commitment to the transition towards platforms of software and autonomy and sets a target of US$600. Cantor Fitzgerald raised its price target to US$510 with an overweight recommendation, and Needham reiterated its hold recommendation.
Between earnings that beat on revenue but weakened on profit, a discourse focused on AI, and a divided analyst community, the market opted to punish the stock in the short term. The evolution of the margins, deliveries and execution of the product plan will be the key references for the coming months.
