Tesla’s (NASDAQ:TSLA) Q3 2023 earnings call comes on the heels of the company’s Q3 2023 Update Letter. Tesla remained profitable in Q3, despite a decrease in delivery and production, as well as a reduction in the company’s average selling price. Still, Tesla posted revenues of $23.35 billion and a 7.6% operating margin in Q3 2023.
Tesla did provide some key information in its Q3 2023 Update Letter. For one, the Cybertruck’s first delivery event has been announced for November 30, 2023, and the cumulative miles of Tesla’s FSD Beta program also rose to 525 million. Tesla Energy turned out to be the dark horse for the quarter with its record energy storage deployments of 4.0 GWh.
The following are live updates from Tesla’s Q3 2023 earnings call. I will be updating this article in real time, so please keep refreshing the page to view the latest updates on this story. The first entry starts at the bottom of the page.
17:30 CDT – And that wraps up Tesla’s Q3 2023 earnings call! This call is quite heavy on information, and Elon Musk was surprisingly cautious. Considering the circumstances across the globe, however, this is understandable. Hopefully, Tesla does survive the storms that are coming.
Thanks so much for staying with us for yet another earnings call live blog. We hope to see you again in the next one!
17:30 CDT – Wells Fargo asks for clarification about Elon Musk’s previous comment about Tesla not going full tilt on Giga Mexico unless the economy is strong and if Tesla’s growth can be achieved without the plant. Musk notes that Tesla will be making a factory in Mexico. It’s just going to be a matter of timing. Tesla is still working on Mexico, but the company is paying close attention to interest rates.
Plus, Giga Texas, despite its scope today, is still just a tiny fraction of the land that Tesla owns. So technically, if push comes to shove, Tesla can just focus on Giga Texas and grow the complex even more. “Tesla is a very capable ship, but even a great ship in a storm has challenges,” Musk said, adding that if interest rates come down, then Tesla should accelerate.
“And I apologize if I’m perhaps more paranoid than I should be. Because that might also be the case because I am. I have PTSD from 2008 — 2017 through 2019 are not perfect either. That was very tough going. So you know, the auto industry is also sort of cyclic. It’s because people tend to hesitate to buy a new car and if there’s uncertainty in the economy,” Musk said.
17:23 CDT – Cannacord asks a question about Tesla’s cost per vehicle coming down in the next quarters. Is this more on scale, cost reductions like giga casting, or other things? The analyst also asks if radar was included in some Model Y in China.
Elon Musk noted that Tesla has not included radar in Model 3 and Model Y cars from Giga Shanghai. Tesla is experimenting with this in the Model S and Model X, but there are no plans to do this for the Model 3 and Model Y just yet.
Musk did note that Tesla is looking into the usability of radar in terms of accident prevention. He stated that cars that had radar before had a radar unit that actually generated more noise than signal. The CEO shared some comments about a Tesla-designed radar.
“A Tesla-designed radar is a high-resolution radar that has some potential to be useful,” Musk said.
17:15 CDT – Elon Musk briefly discussed the “Marie Antoinette vibes” in car pricing. To highlight this, Musk discussed his disdain for a work-from-home system, which he noted was unfair to those who have to be in their workplace for their jobs.
17:14 CDT – A follow-up question about price elasticity was asked. Elon Musk highlighted that regular consumers are concerned with payments. He also reiterated the importance of Tesla’s focus on reducing monthly payments.
“I think there’s very significant price elasticity. To be totally frank, if our car is the same cost as a Toyota RAV4, nobody would buy a RAV4. Or at least they’d be very unlikely to. A lot of these EV incentives are actually very difficult for the average person to access; They can’t front $7,500 for even 6 months,” Musk said.
17:10 CDT – Wolfe Research asks if there is a way to convey the speed of improvement in Tesla’s business. He also asks for any update on the timing of Tesla’s next-generation vehicle. The Tesla team noted that this is an evolving thing, and the company is continuously looking to improve.
As for the timing of the next-generation product, Elon Musk noted that Tesla will not be providing this information at this time.
17:06 CDT – Pierre Farragu asks a question about FSD pricing and if Tesla could evolve the system’s pricing as it improves. Elon Musk noted that the economics of a fully autonomous vehicle are pretty astounding. “The economics of the system are just insanely positive,” Musk said. “We’re a hardware company with software margins.”
17:02 CDT – Analyst questions begin! Truist starts with an inquiry about the Cybertruck and its ramp to significant volume. The analyst asks if a similar ramp should be expected for the next-generation platform.
Elon Musk noted that Cybertruck’s production will ramp in 18 months. So, while the Cybertruck’s ramp will cover three calendar years, it’s really just 1.5 years. The team also noted that the Cybertruck has unique complexities affecting the production ramp.
“We dug our own grave with Cybertruck,” Musk joked, to some laughter from the team. “The Cybertruck has a lot of bells and whistles.”
Musk noted that Tesla’s next-generation platform is quite more conventional in that sense. There are simply not as many new things with the next-gen vehicle. Tesla is doing everything possible to simplify the next-generation vehicle to achieve levels per minute in terms of production. Musk also noted that the next-gen Tesla is “utilitarian but cool and beautiful.”
16:56 CDT – A question about Optimus was asked, and if some of the robots can be deployed next year. Musk noted that at this point, Tesla is not yet ready to discuss updates with the Optimus program. But Optimus is improving, and it’s improving fast.
A final investor question was asked about FSD’s international rollout. Musk noted that regulations in different countries dictate the availability of FSD outside the United States. He also admits that he has been overly optimistic about Tesla’s FSD progress.
16:54 CDT – A question about FSD’s price drop was asked. Musk notes that Tesla simply wants to make the system more affordable. The current price is a temporary low, Musk stated. “Well, we just wanted to make it more affordable,” he noted.
A follow-up question was asked about when Tesla will accept legal liability for FSD. Musk joked that everyone already assumes Tesla has legal liabilities. The team also highlighted that L3 systems like the Mercedes-Benz Drive Pilot are very limited, while Tesla’s FSD system is holistic. “It’s baby AGI,” Musk said.
16:52 CDT – A question about Tesla’s growth rate was asked. Elon Musk notes that Tesla is already one of the fastest-growing automakers today. As for the Robotaxi, Musk noted that the vehicle will definitely be non-driven. He highlighted that he is indeed very excited about autonomy, which is pretty amazing in its own right. This is especially notable since Tesla’s work on autonomy will pave the way for Optimus.
16:47 CDT – An inquiry about Giga Shanghai, Berlin, and Mexico was asked. Tesla notes that for Mexico, Tesla is working with factory design. Tesla is working on new production line for next-generation vehicle at Giga Mexico. Elon Musk states Tesla is laying the ground work for construction at Giga Mexico. “We just want to get a sense of the global economy” before Tesla goes all-in.
Elon notes that Tesla is advertising. He acknowledges that advertising is useful, but if people can’t afford Tesla’s cars, advertising won’t do much good. Musk emphasizes his concerns over interest rates and the importance of Tesla’s focus on reducing monthly payments.
16:44 CDT – A second investor question asked about an update on the company’s 4680 cell initiative. Tesla notes that scrap is down 40%, and production is ramping. Giga Texas is now Tesla’s main 4680 facility.
16:43 CDT – Investor questions begin. First up is the company’s expectations for Cybertruck in 2024. Elon Musk notes that it’s difficult to predict this since the Cybertruck is simply so different. It would be a different thing if the Cybertruck were just a copy of another pickup truck, of course. “The more uncharted the territory, the more unpredictable the outcome,” Musk said.
Musk did state that Tesla would eventually hit about 250,000 Cybertrucks per year. This will probably be achieved sometime in 2025.
16:41 CDT – Tesla’s new CFO, Vaibhav Taneja, discusses the company’s finances. He mentions “despite some factory shutdowns, our cost per vehicle decreased to approximately 37,500.” He also discusses that Tesla is focused on reducing costs and investing in the future as the company navigates the years ahead.
16:38 CDT – Musk also reaffirmed Tesla’s 2023 guidance of 1.8 million vehicles.
16:37 CDT – Elon highlights that while the Cybertruck is being released this quarter, expectations must be set with regard to the vehicle’s production ramp.
“There will be enormous challenges in reaching volumes production and cash flow positive. This is our best product ever, but it’d going to require immense work to get cash flow positive at a price that people can afford.
“I just want to temper expectations for the Cybertruck. It’s a great product, but financially, it will take a year to 18 months before it is a significant cash flow contributor,” Musk said.
16:36 CDT – Elon notes that Tesla Energy and Service now contribute over half a billion dollars in quarter profit. It’s becoming one of the company’s most profitable businesses, and it’s growing fast.
16:32 CDT – Oh boy, that was a technical issue. Elon Musk is already speaking. He’s discussing Tesla’s progress with autonomy. He notes that he’s seeing significant promise with FSD Beta V12, which is an end-to-end solution. “We will continue to invest heavily in AI development,” Musk said.
16:30 CDT – It’s time! The Q3 2023 earnings call should be starting any minute now. The music’s stopped, so we’re just waiting for the actual call to begin.
16:29 CDT – And here’s the music! I wonder if Tesla will start on Elon time?
16:15 CDT – Hello, everyone, and welcome to our live blog of Tesla’s third-quarter earnings call! As expected, Tesla’s revenue and EPS took a hit in Q3, thanks in no small part to the company’s decrease in vehicle deliveries. Tesla was still profitable, though, so that pretty much proves that an EV business could consistently make money.
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Investor's Corner
Tesla Q4 delivery numbers are better than they initially look: analyst
The Deepwater Asset Management Managing Partner shared his thoughts in a post on his website.
Longtime Tesla analyst and Deepwater Asset Management Managing Partner Gene Munster has shared his insights on Tesla’s Q4 2025 deliveries. As per the analyst, Tesla’s numbers are actually better than they first appear.
Munster shared his thoughts in a post on his website.
Normalized December Deliveries
Munster noted that Tesla delivered 418k vehicles in the fourth quarter of 2025, slightly below Street expectations of 420k but above the whisper number of 415k. Tesla’s reported 16% year-over-year decline, compared to +7% in September, is largely distorted by the timing of the tax credit expiration, which pulled forward demand.
“Taking a step back, we believe September deliveries pulled forward approximately 55k units that would have otherwise occurred in December or March. For simplicity, we assume the entire pull-forward impacted the December quarter. Under this assumption, September growth would have been down ~5% absent the 55k pull-forward, a Deepwater estimate tied to the credit’s expiration.
“For December deliveries to have declined ~5% year over year would imply total deliveries of roughly 470k. Subtracting the 55k units pulled into September results in an implied December delivery figure of approximately 415k. The reported 418k suggests that, when normalizing for the tax credit timing, quarter-over-quarter growth has been consistently down ~5%. Importantly, this ~5% decline represents an improvement from the ~13% declines seen in both the March and June 2025 quarters.“
Tesla’s United States market share
Munster also estimated that Q4 as a whole might very well show a notable improvement in Tesla’s market share in the United States.
“Over the past couple of years, based on data from Cox Automotive, Tesla has been losing U.S. EV market share, declining to just under 50%. Based on data for October and November, Cox estimates that total U.S. EV sales were down approximately 35%, compared to Tesla’s just reported down 16% for the full quarter. For the first two months of the quarter, Cox reported Tesla market share of roughly a 65% share, up from under 50% in the September quarter.
“While this data excludes December, the quarter as a whole is likely to show a material improvement in Tesla’s U.S. EV market share.“
Elon Musk
Tesla analyst breaks down delivery report: ‘A step in the right direction’
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026,” Ives wrote.
Tesla analyst Dan Ives of Wedbush released a new note on Friday morning just after the company released production and delivery figures for Q4 and the full year of 2025, stating that the numbers, while slightly underwhelming, are “better than feared” and as “a step in the right direction.”
Tesla reported production of 434,358 and deliveries of 418,227 for the fourth quarter, while 1,654,667 vehicles were produced and 1,636,129 cars were delivered for the full year.
Tesla releases Q4 and FY 2025 vehicle delivery and production report
Interestingly, the company posted its own consensus figures that were compiled from various firms on its website a few days ago, where expectations were set at 1,640,752 cars for the year. Tesla fell about 4,000 units short of that. One of the areas where Tesla excelled was energy deployments, which totaled 46.7 GWh for the year.
🚨 Wedbush’s Dan Ives has released a new note on Tesla $TSLA:
“Tesla announced its FY4Q25 delivery numbers this morning coming in at 418.2k vehicles slightly below the company’s consensus delivery estimate of 422.9k but much better than the whisper numbers of ~410k as the…
— TESLARATI (@Teslarati) January 2, 2026
In terms of vehicle deliveries, Ives writes that Tesla certainly has some things to work through if it wants to return to growth in that aspect, especially with the loss of the $7,500 tax credit in the U.S. and “continuous headwinds” for the company in Europe.
However, Ives also believes that, given the delivery numbers, which were on par with expectations, Tesla is positioned well for a strong 2026, especially with its AI focus, Robotaxi and Cybercab development, and energy:
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026. We look forward to hearing more at the company’s 4Q25 call on January 28th. AI Valuation – The Focus Throughout 2026. We believe Tesla could reach a $2 trillion market cap over the coming year and, in a bull case scenario, $3 trillion by the end of 2026…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
It’s no secret that for the past several years, Tesla’s vehicle delivery numbers have been the main focus of investors and analysts have looked at them as an indicator of company health to a certain extent. The problem with that narrative in 2025 and 2026 is that Tesla is now focusing more on the deployment of Full Self-Driving, its Optimus project, AI development, and Cybercab.
While vehicle deliveries still hold importance, it is more crucial to note that Tesla’s overall environment as a business relies on much more than just how many cars are purchased. That metric, to a certain extent, is fading in importance in the grand scheme of things, but it will never totally disappear.
Ives and Wedbush maintained their $600 price target and an ‘Outperform’ rating on the stock.
Investor's Corner
Tesla releases Q4 and FY 2025 vehicle delivery and production report
Deliveries stood at 406,585 Model 3/Y and 11,642 other models, for a total of 418,227 vehicles.
Tesla (NASDAQ:TSLA) has reported its Q4 2025 production and deliveries, with 418,227 vehicles delivered and 434,358 produced worldwide. Energy storage deployments hit a quarterly record at 14.2 GWh.
Tesla’s Q4 and FY 2025 results were posted on Friday, January 2, 2026.
Q4 2025 production and deliveries
In Q4 2025, Tesla produced 422,652 Model 3/Y units and 11,706 other models, which are comprised of the Model S, Model X, and the Cybertruck, for a total of 434,358 vehicles. Deliveries stood at 406,585 Model 3/Y and 11,642 other models, for a total of 418,227 vehicles.
Energy deployments reached 14.2 GWh, a new record. Similar to other reports, Tesla posted a company thanked customers, employees, suppliers, shareholders, and supporters for its fourth quarter results.
In comparison, analysts included in Tesla’s company-compiled consensus estimate that Tesla would deliver 422,850 vehicles and deploy 13.4 GWh of battery storage systems in Q4 2025.
Tesla’s Full Year 2025 results
For the full year, Tesla produced a total of 1,654,667 vehicles, comprised of 1,600,767 Model Y/3 and 53,900 other models. Tesla also delivered 1,636,129 vehicles in FY 2025, comprised of 1,585,279 Model Y/3 and 50,850 other models. Energy deployments totaled 46.7 GWh over the year.
In comparison, analysts included in Tesla’s company-compiled consensus expected the company to deliver a total of 1,640,752 vehicles for full year 2025. Analysts also expected Tesla’s energy division to deploy a total of 45.9 GWh during the year.
Tesla will post its financial results for the fourth quarter of 2025 after market close on Wednesday, January 28, 2026. The company’s Q4 and FY 2025 earnings call is expected to be held on the same day at 4:30 p.m. Central Time.
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