Tesla’s Earnings Call Sparks Investor Concerns

Investors expressed disappointment with Tesla’s third-quarter earnings report, as CEO Elon Musk concentrated on futuristic ventures like robotaxis and humanoid robots. This left many wondering about the electric vehicle (EV) segment.

During the earnings call, Musk dedicated much of his time to discussing Tesla’s ambitious plans. While he outlined the potential of robotaxis and the Optimus robot, analysts and investors were left with more uncertainties regarding the current status of the company. After the report, Tesla’s stock dipped nearly 4% in after-hours trading, but it rebounded during the following day’s trading session. This drop in share price came after profits missed analysts’ expectations, and concerns arose regarding a lack of comments on EV demand. Notably missing from Musk’s discussion were critical topics such as the expiration of a significant federal tax credit, issues surrounding the Cybertruck, and the effects of tariffs on auto parts.

Rather than tackling these pressing matters, Musk emphasized his vision for the future. He described the robotaxi service as a “shockwave” and asserted that Optimus could “become the biggest product in history,” suggesting that the potential of these projects might be overlooked by the public.

Musk anticipated that by the year’s end, Tesla could launch a robotaxi service in Austin without a human driver, eventually expanding to eight to ten cities by the end of 2025. However, the company has yet to produce or sell vehicles that can operate independently, and only 12% of its vehicles come equipped with partial self-driving capabilities.

He also made ambitious claims about the Optimus robot, implying that it could function as an “incredible surgeon” and, when paired with self-driving technology, could help eliminate poverty and ensure everyone has access to top-tier healthcare.

While these innovative projects are certainly intriguing, many investors and analysts sought more clarity on Tesla’s core operations. Sales growth for the company has stagnated recently, with experts forecasting a decline of about 2% for the fourth quarter. Additionally, Tesla’s brand value has slipped significantly, dropping from 12th to 25th place on Interbrand’s Best Global Brands list.

Questions about upcoming products were submitted by investors through an online forum, but the director of investor relations, Travis Axelrod, declined to address these inquiries during the call, suggesting that such topics were not suitable for the earnings discussion.

As the call wrapped up, Musk turned his attention to a new pay structure that could be worth $1 trillion, potentially increasing his stake in Tesla by 12%. He criticized proxy advisory firms that recommended shareholders vote against the plan, labeling them “corporate terrorists” who were “outrageously clueless.”