Tesla’s Q3 2025 Delivery Record Masks Margin Concerns, Says Top Investor
Tesla shattered expectations with a record 497,099 EV deliveries in Q3 2025, marking a stark reversal from earlier quarterly declines. The surge coincided with the expiration of a $7,500 federal tax credit, raising questions about demand sustainability beyond incentive-driven purchases.
Revenue climbed 12% year-over-year to $28.1 billion, but profitability metrics faltered. Gross margins contracted to 18% from 19.8%, while GAAP EPS plummeted 37%. "The investment question is whether profits can scale as fast as revenue from here," warns Daniel Sparks, a TipRanks-top-rated analyst who acknowledges top-line strength but finds the margin trajectory troubling.