Tesla ( (TSLA) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Tesla’s recent Q3 earnings report revealed mixed results, with record revenue of $28.09 billion, surpassing expectations by $1.39 billion, largely due to a rush of consumer purchases before the expiration of a $7,500 EV tax credit. However, profits fell by 29% year-over-year to $1.8 billion, missing forecasts, as increased costs from tariffs and investments in AI and robotics weighed on margins. Despite these challenges, Tesla’s Energy Generation and Storage segment thrived, with revenue rising 44% to $3.41 billion, driven by the success of the Megapack 3 and Megablock systems.
Tesla’s ambitious AI and autonomous driving projects continue to be a focal point, with the company developing a new AI5 chip expected to significantly enhance performance. The company is also on track to begin large-scale production of its Optimus humanoid robot in 2026, a year that is anticipated to be pivotal for Tesla. Despite the optimism from some analysts, who see potential for Tesla to reach a $2 trillion market cap, the stock holds a mixed consensus on Wall Street, with a Hold rating and a price target suggesting a potential downside. Additionally, Tesla faces scrutiny from the National Highway Traffic Safety Administration over safety concerns related to its Full Self-Driving system, adding to the regulatory challenges the company must navigate.