Tesla Posts Return to Revenue Growth, Though Q3 Profits Miss Estimates

Tesla's revenue rebounded in Q3, climbing 12% year-over-year to $28.1 billion as buyers capitalized on expiring tax credits. The electric vehicle Maker surpassed analysts' expectations, with record global deliveries signaling broad-based growth. This recovery follows two consecutive quarters of decline, previously impacted by backlash against CEO Elon Musk's political activities.

Despite the revenue beat, Tesla's adjusted earnings of $0.50 per share fell short of the $0.54 consensus estimate. Higher costs from restructuring and AI investments weighed on profitability. Shares dipped 1% in after-hours trading, though remain up approximately 9% for 2025 after struggling earlier this year.

The company continues to underperform most Magnificent 7 peers, trailing only Apple and Amazon in year-to-date performance. Tesla's stock has also lagged behind major indices and the Roundhill Magnificent Seven ETF, reflecting ongoing investor skepticism amidst its transitional phase.