As Tesla prepares to unveil its Q3 2025 earnings, investors are on the edge of their seats, eager for insights into the company’s future. With significant developments on the horizon, including advancements in autonomous driving and energy solutions, the stakes are high for this tech giant. Here’s what investors are hoping to learn.
Investors seek clarity on key questions ahead of earnings report
Tesla (NASDAQ: TSLA) is set to disclose its earnings for the third quarter of 2025, and investors have voiced their top five questions ahead of this crucial announcement. These inquiries reflect concerns about the future trajectory of the company, especially regarding the expected launch of Robotaxi, developments within the energy division, and the overall demand without the benefit of tax credits.
Utilizing the investor engagement platform Say, Tesla has encouraged its investors to submit questions for the earnings call. The most pressing questions that have emerged are:
- What are the latest metrics for Robotaxi? Investors are keen to know the current fleet size, total miles driven, rides completed, and intervention rates. They also want to understand when safety drivers will be removed and what hurdles remain for the unsupervised Full Self-Driving (FSD) deployment.
- Expert Insight: While Tesla has historically been tight-lipped regarding specifics, many anticipate that CEO Elon Musk will provide some updates, especially since he previously indicated that safety drivers should be eliminated by the end of this year.
- What is the demand for Tesla’s energy products? Investors are inquiring about the backlog for products like Megapack, Powerwall, and solar solutions. With the increasing demand for energy solutions amidst an AI boom, questions arise about Tesla’s strategic plans to supply power to hyperscalers.
- Expert Insight: Tesla often reveals little during earnings calls, but this question could highlight a significant shift in focus towards its energy sector, which has been historically overshadowed by vehicle sales.
- Are there plans for new vehicle models? Investors are curious whether Tesla will leverage the Cybercab platform for compact cars and if traditional SUVs and trucks will be developed on the Cybertruck architecture.
- Expert Insight: Historically, Tesla refrains from announcing new projects during earnings calls, so expectations should be tempered. The focus may remain on existing models rather than new platforms.
- What challenges does Tesla face with the Optimus project? Stakeholders want to hear about the obstacles in bringing its humanoid robot to market, particularly regarding software, hardware, and supply chain challenges.
- Expert Insight: The discussion may touch on the capabilities of Optimus Gen 3, with possible timelines for showcasing the new design, reflecting Tesla’s ongoing internal use of the technology.
- How is Tesla addressing demand stimulation beyond price reductions? Given the current political climate, investors want to know if Tesla’s brand can reclaim its inspirational image tied to performance and environmental impact.
- Expert Insight: Tesla will likely highlight its new Standard offerings, aiming to distance itself from recent controversies surrounding Musk’s political involvements.
Anti-Musk campaign gains momentum ahead of earnings call
As Tesla gears up for its earnings report, a coalition of unions and corporate watchdogs has launched the “Take Back Tesla” campaign. This initiative urges shareholders to reject Elon Musk’s proposed 2025 CEO Performance Award, which could grant him additional shares valued at nearly $1 trillion over the next decade.
The campaign is supported by organizations such as the American Federation of Teachers and Public Citizen, who argue that this pay package poses significant governance risks and undermines corporate accountability. They contend that Musk’s focus has shifted from leading Tesla to diversifying his interests across various ventures.
“For Musk to unlock the full value of this compensation plan, Tesla’s valuation would need to increase to $8.5 trillion, effectively doubling the current market cap of the leading company, Nvidia,” the coalition stated. “This is an outrageous expectation, especially considering the vast discrepancy between Musk’s potential earnings and those of other top executives.”
Concerns raised about governance and leadership at Tesla
Criticism from the campaign highlights a perceived lack of independence within Tesla’s board, which they argue has allowed Musk to operate as an “absentee CEO.” New York City Comptroller Brad Lander remarked that while Tesla has historically been a strong investment, he opposes Musk’s compensation plan. He expressed concerns over Tesla’s failure to meet expectations regarding its Robotaxi and FSD ambitions, emphasizing the need for governance reform.
In contrast, Tesla’s board defends the compensation proposal as essential to retain Musk and foster innovation, particularly in AI and self-driving technologies. Historical skepticism about Tesla’s ambitious goals, they argue, has often been followed by significant market growth.
Record vehicle deliveries signal growth but raise margin concerns
As Tesla prepares to release its Q3 2025 earnings, expectations are high following a record delivery of 497,099 vehicles and unprecedented energy storage sales. However, analysts caution that these metrics may come at a cost, suggesting a potential decline in profit margins.
Projected earnings per share are expected to fall by approximately 25% year-over-year, estimated between $0.53 and $0.55. Despite revenue growth projected at 4% to 6%, this suggests that the record deliveries were partly driven by aggressive pricing strategies, as many buyers rushed to purchase before the expiration of the federal EV tax credit in September.
Analysts predict that automotive gross margins, excluding regulatory credits, will hover between 16.5% and 17%. If margins drop below this threshold, it could signal significant cost pressures for Tesla.
Energy segment as a stabilizing force amid challenges
Amidst the anticipated decrease in automotive profit margins, Tesla’s Energy segment is expected to act as a stabilizer. The company deployed 12.5 GWh of energy storage in Q3, driven by strong demand from AI data centers. This high-margin division could help cushion the impact of declining car profits and is seen as a critical area for future growth.
Importance of AI and FSD initiatives for Tesla’s valuation
Investors are particularly interested in how Tesla addresses its ambitious AI and robotics initiatives during the earnings call. The company’s current valuation, trading about 17% above the average analyst consensus, hinges heavily on the success of its Full Self-Driving and Robotaxi programs. Key updates on these projects are essential to maintain investor confidence.
In light of the controversial 2025 CEO Performance Award, discussions in the earnings call may also touch on how the outcome of the vote could influence Tesla’s AI strategy and overall market positioning.