Tesla, Inc. (NASDAQ:TSLA) is back in the saddle after a rough start to 2025. CEO Elon Musk’s political activities invited plenty of blowback, and they were certainly a factor in slowing EV sales and deliveries during the first half of the year.
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Q3 2025 presented a very different picture, as Tesla’s EV deliveries of 497,099 represented both a year-over-year increase of some 7% and also set a new company record.
However, the record-setting figure did come with an asterisk, as critics were quick to point out that the September 30 expiration of a $7,500 tax credit in the U.S. caused a number of consumers to pull their purchases forward. In other words, this was just an artificial bump, and not a sustainable increase.
Still, TSLA’s share price is up almost 70% for the last six months, signaling there is more to the company’s resurgence than just improving EV numbers. Indeed, it’s clear that the company’s AI initiatives, such as full self-driving and humanoid robots, have filled some investors with visions of massive paydays on the horizon.
Top investor Neil Patel reminds investors that Tesla remains a car company first and foremost, and he cautions them not to lose sight of the real-world metrics in the here and now.
“Investors must keep tabs on the company’s automotive gross margin. This important metric indicates Tesla’s pricing power and the health of the core operating activity, which is selling electric vehicles to customers around the world,” explains the 5-star investor, who is among the top 3% of stock pros covered by TipRanks.
Patel further notes that the EV market is getting increasingly competitive, with both foreign and domestic players seeking to cut into Tesla’s market share. This is a marked change from the previous years, when Tesla “dominated the EV market.”
The investor also points to Tesla’s sensitivity to larger economic factors. He notes that while the company’s earlier revenue gains might have resembled a software company, during the past few years Tesla’s financial performance has been more akin to a car maker that is heavily influenced by external trends throughout the economy.
“This business gets a lot of attention based on what it could become one day. Tesla shareholders should instead focus on the present situation,” adds Patel. (To watch Neil Patel’s track record, click here)
There’s a bit of a mixed opinion on Wall Street, where 15 Buys, 13 Holds, and 9 Sells combine to make Tesla a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $365.31 implies a downside of some 15%. (See TSLA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.