Tesla stock (TSLA) threw its usual post-earnings tantrum. After reporting a sharp drop in profit for the third quarter, the stock initially fell Thursday morning but clawed back losses by the close. The rebound was familiar for investors who have come to expect volatility around Tesla’s earnings reports.
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Operating profit came in at $1.6 billion, down 40% from a year earlier. Despite the decline, the stock finished the day up 2.3% at $448.98 and traded slightly lower in early Friday trading. Over the past three years, Tesla shares have often fallen on results day, only to recover the next session. The stock has risen the day after earnings 10 times out of 12, usually by about 3%.
Earnings Results Show Familiar Strains
The quarter reflected the same pressures that have dogged Tesla all year. Costs climbed, margins narrowed, and the expiration of the $7,500 federal EV tax credit looms large for the fourth quarter. Operating expenses rose 50% to $3.4 billion, driven by higher tariffs and component prices.
Still, none of this surprised investors. The numbers were largely in line with expectations, and the muted market reaction suggested most of the bad news was already priced in.
Investors Focus on the Long Game
Attention has turned toward Tesla’s future rather than its short-term performance. Analysts say the company’s growth story now hinges on robotaxis, automation, and advanced AI systems. Barclays analyst Dan Levy said investors remain focused on “the potential for robots and robo-taxis” as the company’s next phase of expansion.
These ambitions have yet to generate much profit, but they underpin Tesla’s valuation. The idea that software and autonomy could replace car sales as the company’s engine of growth continues to draw long-term investors.
Tesla Maintains Its Broader Momentum
Thursday’s late-session rally reflected that confidence. After dipping as low as $413, Tesla stock found support and reversed higher, echoing its long-running tendency to rebound after earnings.
The stock remains up roughly 11% in 2025 and 72% over the past year. For now, Tesla’s path forward still depends on innovation, and history suggests the company’s occasional stumbles rarely keep it down for long.
Is Tesla Stock a Buy, Hold, or Sell?
Turning to Wall Street, TSLA stock has a Hold consensus rating based on 14 Buys, 13 Holds, and 10 Sells assigned in the last three months. The average 12-month Tesla price target is $375.63, implying a 16.3% downside potential.
Analyst ratings are likely to change post the earnings call yesterday.
