Electric vehicle maker Tesla (TSLA) will be the first of the “Magnificent Seven” stocks to report earnings this season. The company is set to announce its third-quarter 2025 results on October 22. Tesla stock has made a strong comeback after a difficult start to the year. Over the past six months, shares have surged more than 100%, helped by growing optimism around its AI ambitions and solid vehicle delivery numbers. In Q3, Tesla delivered 497,099 vehicles, well above analysts’ estimates of 439,800, boosting investor confidence.
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However, there are still challenges ahead. Rising competition in the EV market and questions about how Tesla will profit from its AI efforts continue to weigh on sentiment. While Tesla’s long-term story still centers on AI and automation, the absence of meaningful revenue from these areas is fueling growing investor skepticism. As a result, Wall Street remains cautious heading into Tesla’s earnings report.
What to Watch on October 22
Wall Street expects Tesla to report earnings of $0.55 per share for Q3, down 24% from the year-ago quarter. Meanwhile, analysts project Q3 revenues at $26.33 billion, up 5% year-over-year.
Tesla’s earnings call will be closely watched for updates on profit margins, production costs, and how the company is managing pricing pressure amid rising competition. Investors will also look for commentary on vehicle delivery trends, progress on new models, and updates on its energy storage and autonomous driving initiatives.
Analyst’s Opinion Ahead of Q3 Print
Ahead of Q3 results, BNP Paribas analyst James Picariello initiated coverage on Tesla with a Sell rating and a price target of $307, suggesting a potential 30% downside from current levels. Picariello argued that Tesla’s trillion-dollar valuation is driven largely by optimism surrounding its artificial intelligence ventures—such as robo-taxis and humanoid robots—which so far contribute no revenue.
“We see potential for AI-related upside over time, but much of that appears already priced in,” he said.
Is Tesla Stock a Buy Now?
On Wall Street, analysts have maintained a Hold stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 16 Buys, 13 Holds, and 10 Sells assigned in the last three months. The average Tesla stock price target is $366.35, suggesting a potential downside of 16.6% from the current level.
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