Tesla Inc (NASDAQ:TSLA) is set to reports its third quarter 2025 earnings on Wednesday after US markets close, with Wedbush analysts anticipating a stronger-than-expected quarter driven by EV deliveries and a rebound in China sales.
“After a brutal few quarters we are finally starting to see stable demand trends for Tesla,” the analysts believe.
Wedbush projects third quarter total revenue of roughly $26 billion, including automotive revenue near $19 billion, slightly below the Wall Street consensus of $26.45 billion.
The firm projects earnings per share (EPS) of $0.53, in line with the consensus.
“EPS are beatable with a stronger impact from its energy division which carries a higher margin profile versus its EV business, Wedbush wrote.
China, previously a headwind for Tesla, “remains a source of strength,” Wedbush added.
“The Model Y is spurring incremental demand in the region while the new six-seat Model YL has played a significant role with driving new demand for its fleet in the region despite seeing more low-cost models entering the market with China representing the heart and lungs of Tesla’s growth story,” they analysts wrote.
Beyond financial measures, Wedbush expects investors to focus on Tesla’s broader AI and robotics ambitions.
They expect key topics on the company’s earnings call to include the Robotaxi rollout across the US, the volume production trajectory for Cybercabs and Optimus in 2026, and the timing of any new models set to hit the road early next year.
Wedbush also highlighted the upcoming shareholder meeting on November 6, where they expect shareholders to approve Musk's potential $1 trillion pay package and “importantly lay the groundwork for a major investment in xAI that is a key ingredient in Tesla's broader AI initiatives.”
Looking ahead, Wedbush remains bullish on Tesla’s long-term potential in AI and robotics.
“We continue to strongly believe the most important chapter in Tesla’s growth story is now beginning with the AI era now here,” the firm wrote.
“It starts with autonomous then robotics as we believe the autonomous valuation is worth $1 trillion alone to the Tesla story over the next few years that will start to get unlocked over the coming months.”
The firm maintained its ‘Outperform’ rating and $600 price target for the stock.
“We continue to believe Tesla could reach a $2 trillion market cap early 2026 in a bull case scenario and $3 trillion by the end of 2026 as full scale volume production begins of the autonomous and robotics roadmap,” Wedbush concluded.
Shares of Tesla traded at about $435 in the early afternoon on Wednesday, up about 7% in the year to date.
- Updated with share price movement -