LIVE: TESLA Q3 EARNINGS REPORT COVERAGE AND ANALYSIS (Q3-25)

EV Channels Review

Tesla's Q3 2025 earnings report reveals a strong quarter with record vehicle deliveries and energy storage deployments, leading to record revenue and free cash flow. The company launched new, more affordable 'Standard Range' variants of the Model 3 and Model Y, aiming to increase accessibility, particularly following the expiration of US EV tax credits. While automotive revenue saw a year-over-year increase, gross margins in this segment were the best in the last 12 months, despite the introduction of lower-priced models. The energy storage and services businesses also demonstrated significant growth, achieving record gross margins and deployments. The report highlights Tesla's continued investment in AI and autonomy, with advancements in FSD supervised and the upcoming Cyber Cab and Optimus robot. Despite a year-over-year decrease in operating income due to increased operating expenses, primarily in R&D and AI projects, the company maintains a strong cash position and is prudently investing in future growth areas. The outlook remains focused on scaling core hardware, leveraging AI for services, and preparing for volume production of new products like the Tesla Semi and Cyber Cab in 2026.