Tesla Q3 Earnings Miss Estimates, Stock Weakness Reflects Market Challenges
Tesla shares declined Thursday after third-quarter earnings fell short of Wall Street expectations. The electric vehicle Maker reported adjusted earnings of 50 cents per share, below the consensus estimate of 54 cents, as price cuts and rising operational costs squeezed margins.
Aggressive discounting and promotional financing failed to offset weakening demand dynamics. The expiration of federal EV tax credits on September 30 created temporary demand pull-forward, while reduced clean air credit revenue following regulatory changes further pressured profitability.
Market share erosion compounds Tesla's challenges, with U.S. dominance slipping to 41% from 48% year-over-year. Technical indicators suggest weakening momentum as the stock threatens to break below a key chart pattern, potentially signaling further downside.
