Tesla disclosed its third-quarter financial earnings on Wednesday, reporting $28.1 billion in revenue and a cumulative free cash flow that surpassed $20 billion for the first time.
Barclays, Cantor Fitzgerald, Goldman Sachs, Wedbush, and TD Cowen were some of the firms that sent new research notes to clients commenting on the results.
Goldman Sachs reiterated a Neutral rating on the stock, remaining cautious on the company’s stock performance, even as Tesla advances further on its AI projects.
In a new research note published Thursday — and obtained by PriceTarget — analyst Mark Delaney said that the third quarter report was “mixed to slightly negative relative to some focus areas for investors.”
“While revenue and overall gross margin were above consensus, we believe certain key KPIs […] were somewhat below investor expectations,” the analyst noted.
According to Delaney, the “timeframes management outlined for Optimus 3 to be unveiled and enter production” were also disappointing.
The firm recognizes that “larger contributions from autonomy and robots” are likely to drive EPS (earnings per share) growth, however, their “expectation for profits in these areas is more measured than the company is targeting.”
Tesla‘s earnings per share came in at $0.50 in the third quarter, missing the $0.54 average analyst estimate compiled by LSEG.
Delaney expects the stock to “to remain debated,” citing Tesla’s upcoming events and milestones as key for the stock performance near to medium term.
The firm has a $425 price target on Tesla, which implies a 3.2% downside based on Wednesday’s closing price of $438.97.
Over the past three months, Tesla‘s stock has jumped over 30%.
As of press time, the shares are trading 3.2% lower at $425.32 on Thursday’s pre-market session.
The analyst noted that investors are “likely to focus” on the Annual Shareholder Meeting on November 6, the Robotaxi expansion in the next two months, automotive deliveries in the fourth quarter and the upcoming Optimus unveil in early 2026.
Wedbush analyst Daniel Ives believes that the upcoming vote on Musk’s pay package, which he says “will be incremental to keeping Musk as a war-time CEO as the company enters a critical inflection point,” will be “approved by a wide margin despite some opposition.”
The analyst reiterated on Thursday his $600 price target on Tesla — the most bullish one in the market, implying a 36.7% upside potential on the stock.
In a new note sent to clients, Ives further highlighted that Tesla‘s free cash flow, at $3.99 billion in the third quarter, beat Wall Street’s estimates of $922.8 million by 332%, despite having a tariff impact of about $400 million across its businesses.
“The company’s strong deliveries and higher margin businesses drove successful margin expansion and cash generation,” Ives wrote.
Cantor Fitzgerald is “encouraged” by Tesla‘s automotive figures in the third quarter, despite expecting 2025 deliveries to be below 2024.
Analyst Andres Sheppard wrote in a new research note that the firm sees the introduction of lower-priced vehicles as “an opportunistic way for Tesla to boost consumer demand and potentially regain some EV market share.”
Cantor remains bullish on Tesla “over the medium to long term,” according to Sheppard, who wrote that the company sees “meaningful future upside from Energy Storage & Deployment, FSD, Robotaxis/Cybercab, Semis, and Optimus Bots.”
To the firm, the upcoming introduction of the Full Self Driving (Supervised) software in both China and Europe will be “material catalysts and accretive to margins.”
After the earnings report, the firm has lifted its price target on the company by 43.7%, from $355 to $510. The new price target implies an upside potential of 16.2% on the stock.
Mizuho also increased its price target on the firm to $485, from the previous $450 — implying a 10.5% jump on the share value.
Analyst Vijay Rakesh noted that the firm has updated its financial forecast as it sees Tesla “well-positioned” to lead physical AI with its Cybercab and FSD products.
However, Rakesh warned of “near-term demand headwinds.”
The expiration of the US EV tax credit on September 30 and the upcoming reinstatement of purchase taxes in China are expected to reduce electric vehicle sales, following a temporary surge in purchases before these deadlines.
On the bearish side, Wells Fargo reiterated its $120 price target on the stock, which implies a 72.7% downside.
Analyst Colin Langan wrote on Thursday that “purely on results, we would expect the stock to trade down,” citing missed expectations, high costs and margins with little improvements.
Langan stated that a “disappointing” vehicle gross margin, excluding EV credits, showed “little leverage” considering Tesla’s higher deliveries in this quarter, compared to the previous one.
“That said, this clearly can change based on Elon’s comments on the call,” the analyst said, noting that “Robotaxi production for volume remains targeted for 2026.”
In the meantime, “delivery guidance remains withdrawn.”
UBS analyst Joseph Spak reaffirmed a Sell rating on the stock and a $247 price target, remaining one of the most skeptical among major Wall Street analysts.
In contrast, Baird’s Ben Kallo reiterated an Outperform rating with a $548 target, while TD Cowen’s Itay Michaeli restated a Buy rating and $509 target.
RBC Capital’s Tom Narayan also reaffirmed an Outperform rating with a $500 target, and Piper Sandler’s Alexander Potter maintained an Overweight rating, also at $500.
Stifel’s Stephen Gengaro reiterated a Buy rating and a $483 price target. Canaccord Genuity’s George Gianarikas slightly trimmed his target to $482 from $490 but kept a Buy rating.
“All in all, the results and call had the net effect of increasing our conviction around the creation of a sturdy bridge between Tesla’s past and Tesla’s future,” Gianarikas wrote in a note to clients.
Oppenheimer analyst Colin Rusch reiterated a Perform rating on Tesla noting that “time to material revenue remaining highly uncertain.”
“As TSLA continues its pivot into Physical AI, it remains clear that the company is tackling numerous complex technical challenges, but time to material revenue remaining highly uncertain,” the analyst wrote.
