Tesla Q3 Earnings: Record Revenue Amid AI and Robotics Shift

Tesla's shares oscillated between gains and losses Thursday as the company posted record Q3 revenue of $28.09 billion, surpassing estimates by $1.39 billion. The surge was fueled by consumer purchases ahead of the September 30 expiration of the $7,500 EV tax credit.

Profitability took a hit, with adjusted net income falling 29% year-over-year to $1.8 billion, missing forecasts. Operating margins nearly halved to 5.8% as tariffs and heavy investments in robotics and AI squeezed earnings. 'The golden AI chapter takes hold,' noted Wedbush analyst Daniel Ives, underscoring Tesla's strategic pivot.

The Energy Generation and Storage segment emerged as a bright spot, with revenue jumping 44% to $3.41 billion. Megapack and Megablock deployments drove growth, showcasing Tesla's expanding footprint beyond automotive.