Tesla Gains Momentum on Strong Q3 Earnings and Robotaxi Focus
October 27, 2025, Austin/Beijing
Amid intensifying competition in the electric vehicle (EV) market, Tesla (TSLA) is showing positive momentum today. According to the latest market analysis, the company’s stock is projected to open at $438.55 on Nasdaq, a 1.11% increase from the previous close. This forecast is driven by strong third-quarter earnings and CEO Elon Musk’s commitment to expanding Robotaxi services, restoring investor confidence. Despite ongoing sales weakness in Europe, Tesla’s energy storage business and AI-driven autonomous driving technology are emerging as key growth engines.
Q3 Earnings and Robotaxi Expansion
Tesla’s 2025 Q3 earnings, released on October 22, reported strong results exceeding expectations:
- Record 497,000 vehicle deliveries (up 7% YoY)
- 12.5 GWh of energy storage deployed (up 81%)
- GAAP net income stood at $1.4 billion
- $4 billion in free cash flow
Post-earnings, the stock rose 0.16% in after-hours trading, closing at $443.31. Musk emphasized during the earnings call that Tesla plans to expand Robotaxi to 8–10 major metro areas by the end of 2025, with Cybercab (steering-wheel-free robotaxi) production starting in Q2 2026. The service is currently in pilot in Austin and the Bay Area, still under human safety driver supervision.
Market Challenges and Competitive Pressure
Challenges persist. European sales fell 13%, partly due to consumer backlash against Musk’s political comments and fierce competition from Volkswagen and BYD. China’s BYD is on track to surpass Tesla as the world’s top EV seller this year. Additionally, the Cybertruck has faced 8 recalls to date. To counter slowing demand, Tesla launched more affordable Model Y ($39,990) and Model 3 ($36,990) variants in early October, with slightly reduced range but deliveries starting December 2025–January 2026. Analysts note the pricing is “not aggressive enough” to fully counter low-cost Chinese rivals.
Long-Term Outlook: AI, Robotics, and Energy
Long-term optimism remains strong. Wedbush analyst Dan Ives recently raised his price target to a “stunning level,” highlighting Tesla’s pivot from automaker to robotics and autonomy leader. Musk hinted on X that Full Self-Driving (FSD) software could be licensed to other OEMs. Meanwhile, Musk’s xAI has become a major buyer of Tesla energy products, spending $36.9 million in the first two months of 2025.
Pre-market volatility is expected at ~4.98%, with support at $429.83. With the $7,500 federal EV tax credit expiring on October 1, demand is rebounding. Full-year deliveries are projected at 1.62 million—a second consecutive decline—but Robotaxi and Optimus (humanoid robot, production slated for late 2025) are seen as “infinite money printers.”
Tesla’s innovation journey is fraught with obstacles, but its AI and clean energy bets are reigniting the electric empire. Investors await next week’s earnings season updates.
(Sources: CNBC, Reuters, Investing.com, Tesla IR)