The eyes and ears of Wall Street are keenly focused on Tesla, Inc. (NASDAQ:TSLA) this week as the EV company prepares to release its Q3 2025 earnings tomorrow.
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Tesla presents a bit of a quandary for investors, with a seemingly non-stop array of factors to consider when deciding whether to buy, hold, or sell. While that’s the case for any investment decision, TSLA takes this a few steps further.
For instance, should investors place the highest emphasis on Tesla’s EVs (which achieved a record number of deliveries in Q3 2025), the company’s largest source of revenue in the here and now?
Or should investors look to the future, and Tesla’s autonomous visions for robotaxis and humanoid androids. There are enormous pots of gold that are potentially waiting at the end of those rainbows.
Of course, underpinning any discussion about Tesla is CEO Elon Musk, whose large shadow serves as a kind of Rorschach test for how many view the company.
For one investor known as Hunting Alpha, the answer is clear: don’t limit your focus to the company’s current operations.
“A lot of the bearish arguments seem to focus on the struggles of the existing automotive business alone, which I believe is an incomplete way of viewing things,” explains the investor.
Instead, Hunting Alpha believes the key to TSLA lies in the robotaxi opportunity, which the investor points out looks to be on track. Hunting Alpha cites the company’s decision last month to make robotaxis available for public riders, along with recently granted regulatory permissions to begin testing operations in multiple U.S. states.
The investor is expecting “margin deterioration” when it comes to the auto segment, noting the introduction of cheaper vehicles and decreased lease payments. In addition, moving into Q4, Hunting Alpha foresees weaker EV numbers, in part due to the removal of the U.S. $7,500 EV tax credit.
And yet, Hunting Alpha is ready to look past these struggles and is instead expecting to learn more details about the company’s robotaxi progress on the upcoming call. For Hunting Alpha, robotaxis and robots are very compelling reasons to stick with the Musk-led company.
“The narrative on TSLA’s valuations hinges a lot more upon the company’s future growth potential in these new businesses,” sums up the investor, who rates TSLA a Buy. (To watch Hunting Alpha’s track record, click here)
Wall Street is fairly split on TSLA just prior to its earnings call. With 15 Buys, 13 Holds, and 10 Sells, TSLA carries a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $365.82 implies a downside of ~18%. (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.