Tesla reported adjusted earnings of 48 cents per share for the third quarter, surpassing the 43 cents expected by analysts, and generated $28.05 billion in revenue, slightly above the consensus estimate of $27.9 billion.
Despite these positive results, Tesla's stock fell approximately 4% in premarket trading, reflecting investor concerns about the company's heavy investments in projects like the Optimus humanoid robot and robotaxi fleet, which have yet to yield significant revenue. The automotive segment saw a 3% year-over-year revenue decline, while energy revenue dropped 16% to $2.88 billion.
Analysts have mixed views on Tesla's outlook; for instance, William Blair's Jed Dorsheimer noted that while there is potential for long-term growth from emerging technologies, the near-term outlook remains volatile. Deutsche Bank and Canaccord Genuity maintained buy ratings, with Canaccord raising its price target to $442, indicating a potential 14% upside.
Conversely, Goldman Sachs and HSBC expressed more cautious stances, with HSBC setting a price target of $157, suggesting a 60% downside. Overall, while some analysts see promise in Tesla's long-term growth opportunities, concerns about current revenue trends and high operational expenditures related to AI and robotics projects are weighing on investor sentiment