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💡 Key idea:
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Key takeaways
- Tesla reported revenue growth for the third quarter after two quarters of declines.
- However, the company also posted quarterly earnings per share that were lower than analysts had expected.
Tesla returned to revenue growth in the third quarter as buyers rushed to take advantage of expiring tax credits.
The electric car maker’s revenue rose 12% year-on-year to $28.1 billion, beating analysts’ expectations, in the wake of President Donald Trump signing a “big, beautiful bill.” Tesla (TSLA) said its vehicle deliveries have reached a global record, showing “growth in all regions.” This came after two straight quarters of decline as backlash against CEO Elon Musk’s political activities weighed on sales.
Why this matters to Tesla investors
A string of strong electric vehicle deliveries, many of which came in response to the expiration of U.S. tax credits, helped fuel better-than-expected revenue at Tesla in the latest quarter. Enthusiasm for next-generation companies like robots and taxis has pushed the stock into the black for 2025, but caution about the auto business may partly explain why it’s among the underperforming Magnificent 7 stocks this year.
However, Tesla’s adjusted earnings per share of $0.50 beat the consensus estimate of $0.54 compiled by Visible Alpha. The company said it faced higher costs from restructuring and investments in artificial intelligence.
Its Cybercab, semi-truck and Megapack 3 battery products were “on schedule” for mass production next year, the company said in a letter to shareholders, adding that it was also installing production lines for its Optimus robots.
Shares of Tesla, the first Magnificent 7 company to report third-quarter results, fell more than 1% in extended trading after the release late Wednesday. They’re up nearly 9% for 2025 through today’s close, after spending most of the year in negative territory.
Tesla has underperformed all Magnificent 7 stocks so far this year except Apple (AAPL) and Amazon (AMZN), the latter of which is the only stock in the red for 2025. It has also lagged the Roundhill Magnificent Seven ETF (MAGS) along with the S&P 500 and Dow and Nasdaq.
This article has been updated since it was first published to reflect the stock price movement and add new information and context.
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