Tesla stock was on a rollercoaster on Thursday as investors positioned themselves ahead of the electric vehicle maker’s third-quarter earnings, scheduled for release next week.
At the time of writing, the Tesla stock was up around 0.64% to trade at $437.95.
The Tesla stock has gained 8% this year following a sharp 80% rally over the past six months, fueled largely by optimism surrounding the company’s advances in AI and robotics.
Tesla has increasingly leaned on AI computing to enhance its self-driving capabilities and humanoid robot development.
The company launched a robo-taxi service in Austin, Texas, in June, and aims to begin commercial robot sales by 2026.
What to look for in Tesla’s Q3?
Investors are expected to scrutinise updates on fourth-quarter outlooks, the performance of Tesla’s new “Standard” Model 3 and Y trims, and any plans for new vehicle launches in 2026 and beyond.
For the September quarter, analysts project Tesla to report earnings of $0.54 per share, down from $0.72 in the same period last year.
The Elon Musk-led company delivered a record 497,099 vehicles globally in the quarter, but market attention will centre on automotive margins and overall profitability.
Analysts also anticipate Tesla will deliver around 450,000 vehicles in the fourth quarter.
The recent loss of the $7,500 federal EV tax credit for US buyers is expected to weigh on near-term sales across the sector.
Deutsche Bank analyst Edison Yu wrote that “the magnitude of the drop might not be as bad as feared.”
Analysts expect some of the impact may be mitigated by the newer, cheaper Teslas rolled out earlier this month.
Analysts split on Tesla stock
Morgan Stanley’s Adam Jonas reaffirmed his Buy rating on Tesla, citing confidence in the company’s growth prospects and strong positioning in the global EV market.
Jonas said he views Tesla as well-equipped to benefit from growing demand for sustainable transportation, and his continued optimism underscores the company’s leadership in the electric vehicle space.
He has also been a long-time supporter of Tesla’s expansion into physical AI and robotics, noting that Musk recognised the potential of the sector early.
Jonas highlighted Tesla’s decade-long investment in robotaxis and five-year development of the Optimus humanoid robot.
However, Jonas cautioned that Tesla’s early advantage in robotics is narrowing as other major technology companies—the so-called “Magnificent Seven”—intensify their investments in the same field.
In contrast, BNP Paribas Exane initiated coverage on Tesla with an Underperform rating and a price target of $307, implying a roughly 30% downside from current levels.
The firm said the stock’s risk/reward profile appears unfavourable and argued that market expectations for 2026 are “far too high.”
With analysts divided and earnings approaching, investors are watching closely to see whether Tesla’s fundamentals can justify its AI-fueled valuation surge.
The post Tesla stock whipsaws ahead of Q3 earnings next week: what to expect appeared first on Invezz
