Tesla’s AI and Robotaxi Ambitions Fail to Offset Q3 Earnings Miss
Tesla shares declined despite CEO Elon Musk's emphasis on the company's artificial intelligence and autonomous driving initiatives during its third-quarter earnings call. Revenue climbed 12% year-over-year to $28.01 billion, beating estimates, but earnings per share of $0.50 fell short of the $0.55 consensus. Operating profit plunged 40% to $1.62 billion, pressured by aggressive price cuts, lower regulatory credit sales, and rising costs.
Musk redirected attention from near-term financials to Tesla's long-term technological bets. "Tesla has the highest intelligence density of any AI in the car," he asserted, outlining massive scaling plans for its Robotaxi program. The company unveiled its next-generation AI5 chip, claiming 40-fold performance improvements over its predecessor, while maintaining reliance on Nvidia hardware.
