Vandita Jadeja
5 min read
Quick Read
-
Tesla’s net income dropped 43% to $787M, yet shares fell less than 1% as gross profit rose 9% and adjusted EPS of $0.48 beat estimates.
-
Tesla trades at 159x forward earnings versus GM’s 6x, reflecting how much autonomous driving premium the market has already priced in.
-
Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Tesla didn’t make the cut. Enter your email to see the names that beat TSLA. The report is free. Enter your email and see if any of your stocks made the cut.
Tesla (NASDAQ:TSLA) closed at $386.47 the day it reported a steep drop in profit. The 24/7 Wall St. price target for Tesla is $404.84 over the next 12 months. That means 4.75% upside and a hold rating. We have high confidence in the call.
Third-quarter net income fell 42.68% to $787 million, and shares slid only 0.91% on earnings day. The stock held up because the damage was below the gross profit line.
Gross profit rose 8.71%, while R&D climbed to $2.76 billion from $1.63 billion to fund autonomy, Optimus and AI computing power. Adjusted EPS of $0.48 beat the $0.4511 consensus.
A Calm Reaction After July’s 14.52% Selloff
Compare that with the second quarter, when an EPS miss sent shares down 14.52% in one session. Tesla traded at $382.90 midday. That leaves it up 4.29% over the past week and 2.03% over the past month, but down 14.86% year to date. It sits between a 52-week high of $498.83 and a low of $297.38.
Revenue of $28.046 billion came in essentially flat year over year. Deliveries reached 486,532, and Tesla ended the quarter with its highest backlog in four years.
——
Free Report, Just Released
Why Didn’t TSLA Make The Top 10 List?
24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now.
And TSLA didn’t make the cut!
The report is free, and you can see why we think each stock is a top investment today.
Enter Your Email and See the Ten →
——
Management also cut full-year capex guidance to about $20 billion. Meanwhile, Elon Musk suggested at a tie-up with SpaceX, which keeps merger speculation alive.
Robotaxi, Optimus and Megapack Fuel the Case for $466.97
Paid FSD subscriptions reached 1.74 million, up from 1.04 million. More than 75% of North American deliveries came with an FSD sign-up. The Cybercab fleet in Austin has grown tenfold since launch, and executives see Robotaxi becoming a significant profit contributor in 2027.
