As Tesla’s earnings report approaches, the prospects of artificial intelligence and robotics have become a focal point for the market.
Tesla is set to release its third-quarter earnings report this week. While vehicle sales have resumed growth, investors are shifting their focus to business segments with greater potential.
“After experiencing several challenging quarters, we are finally beginning to see Tesla’s demand trends stabilize,” wrote Wedbush analyst Dan Ives in a report on Sunday.
Tesla (TSLA.O) sold a total of 497,099 vehicles in the third quarter of 2025, marking an approximately 7% year-over-year increase. This growth came as a relief—during the first half of 2025, Tesla sold only about 721,000 vehicles, representing a 13% decline compared to the same period last year.
Part of the third-quarter sales may have been driven by consumers rushing to purchase vehicles before the expiration of the federal $7,500 electric vehicle tax credit in September.
With the end of federal subsidies, investors will focus on the trend of vehicle sales in the fourth quarter. In particular, Tesla’s introduction of lower-priced Model 3 and Model Y ‘Standard Range’ versions will also become a key point of market attention. However, in the upcoming earnings call, vehicle sales may take a backseat to discussions on artificial intelligence.
“The main focus of the earnings call will be: Tesla’s progress in rolling out Robo-taxi (autonomous taxi) services nationwide, as well as the roadmap for mass production of Cybercabs/Optimus in 2026.”
Optimus is Tesla’s AI-driven humanoid robot, while Cybercab is a vehicle specifically designed by Tesla for autonomous taxi services. Investors widely expect that one or both of these products will begin sales next year.
As of Monday, Tesla’s stock price has risen 99% over the past 12 months. Artificial intelligence has bolstered investor confidence. “The most important chapter in Tesla’s growth story is now unfolding—the era of artificial intelligence has arrived,” Ives added. “It all starts with autonomous driving, followed by robotics.”
He rates Tesla stock as a ‘Buy’ and has set a price target of $600, which is the highest target price on Wall Street according to FactSet data. By comparison, the average analyst target price for Tesla stock is around $370.
Overall, among all analysts covering Tesla, 45% have assigned a ‘Buy’ rating. In contrast, the average proportion of ‘Buy’ ratings for stocks in the S&P 500 index is approximately 55%.
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