So Tesla just dropped their Q3 earnings, and it’s giving major “good news, bad news” vibes. The good news? They absolutely crushed it with record revenue of $28.1 billion – that’s a solid 12% bump from last year. The bad news? Their stock decided to take a 5% nosedive.
Here’s the thing: Wall Street already saw this coming. Tesla’s monthly delivery updates basically screamed “we’re killing it,” which is why the stock had already rocketed up 40% over the past two months. Classic case of buy the rumor, sell the news.
The EV tax credits that expired September 30 created a massive rush for car buyers. Everyone was scrambling to snag their Tesla before the credits vanished, explaining the delivery surge. But now that party’s over, and Tesla’s looking at potential future sales headwinds.
While revenue was popping off, net income took a 37% haircut to $1.4 billion. Why? Tesla went on a spending spree – operating expenses jumped 50% to $3.4 billion. They’re betting big on robotics, autonomous vehicles, and energy storage. Problem is, investors want profits today, not promises of robot butlers tomorrow.
Here’s the kicker: Tesla is still trading at 259 times earnings. That’s like paying $259 for a sandwich because the restaurant might become the next McDonald’s. Sure, Tesla’s got big dreams, but that valuation is betting on them solving world hunger while making cars.
The bottom line? Tesla delivered exactly what everyone expected but reminded everyone why growth stocks feel like dating someone with “potential” – exciting, but exhausting.