Tesla Q3 Analysis: Strong Revenue and FSD Growth Offset by Margin Concerns
Tesla, Inc. (TSLA) reported Q3 revenue of $28 billion, bolstered by significant momentum in its Full Self-Driving (FSD) software, which now boasts 1.74 million paid customers and annual recurring revenue nearing $1 billion. Vehicle deliveries reached 486,532 units, while improved inventory management saw days on lot drop from 15 to 11. However, the financial strength is nuanced. While margins appeared higher, they were impacted by substantial tariff refunds, suggesting weaker normalized performance. Additionally, despite holding over $45 billion in liquidity, Tesla faces massive capital requirements for long-term projects including Optimus, Cybercab, and AI infrastructure development.
Tickers: $TSLA
Topics: Capital Expenditures Free Cash Flow FSD Revenue Q3 Revenue Vehicle Deliveries