Tesla Records 497K Deliveries, Misses EPS

Tesla reported record Q3 revenue and record energy‑storage deployments, delivering a company‑high 497,099 vehicles as buyers rushed to claim expiring EV tax credits. Third‑quarter net income fell roughly mid‑30% and adjusted EPS and profits missed expectations as higher R&D (including AI), tariffs (about $400 million), restructuring charges, a higher tax rate and declining regulatory‑credit income weighed on margins. Free cash flow topped roughly $4 billion, but management said capital spending will rise substantially in 2026 to fund both vehicle and AI initiatives. CEO Elon Musk framed the business as moving toward “real‑world AI,” reiterating plans for full self‑driving, robotaxi rollouts (including removal of onboard safety drivers in much of Austin by year‑end and expansion to roughly 8–10 U.S. metro areas), the CyberCab, and continued Optimus development with an Optimus V3 demonstration targeted for early 2026. Tesla is targeting an annualized production capacity near 3 million vehicles within about 24 months, tying the ramp to progress on unsupervised FSD and the CyberCab. Analysts were polarized—some raised price targets on AI/robotics upside while others warned of competition, execution risk and margin pressure—and markets reacted modestly negative after the report.