On Wednesday, Tesla Inc. (NASDAQ:TSLA) shares fell in after-hours trading despite the electric vehicle maker beating third-quarter earnings expectations.
Investors questioned its Full Self-Driving subscription metrics while bullish analysts highlighted its AI ambitions and potential strategic ties to Space Exploration Technologies Corp. (NASDAQ:SPCX).
Tesla Stock Falls Despite Q3 Earnings Beat
Tesla closed Wednesday at $386.47, up 3.41% and fell 3.32% to $373.65 in after-hours trading, according to Benzinga Pro.
The company reported third-quarter revenue of $28.05 billion, flat from a year earlier but above the $27.88 billion analysts expected.
The EV giant attributed the revenue performance to a decline in its energy business, lower average vehicle selling prices and a year-over-year drop in deliveries.
Automotive revenue fell 3% to $20.56 billion. Adjusted earnings came in at 48 cents per share, beating analysts’ consensus estimate of 43 cents.
Gary Black Questions Tesla’s FSD Subscription Metrics
Investor Gary Black said Tesla’s after-hours decline could reflect profit-taking after the stock climbed roughly 7% over the preceding three sessions.
However, he also questioned Tesla’s reported 75% Full Self-Driving attachment rate in North America, noting that the figure may include customers using a free first month.
Black criticized Chief Financial Officer Vaibhav Taneja’s response when, during the earnings call, an analyst asked whether the paid attachment rate was closer to 30%–40%.
“CFO Taneja didn’t help matters on the call,” Black said on X, adding, “Taneja didn’t really answer what seemed like an easy question.”
Bulls See $2 Billion FSD Revenue Opportunity
Yorkville Ives partner and Senior Managing Director Dan Ives said FSD attachment rates exceeded 75% of North American deliveries, while active subscriptions reached 1.74 million, up 67% year over year.
He also highlighted the start of Optimus production and described Tesla’s AI ambitions as strategically aligned with a potential SpaceX merger.
Futurum Equities’ chief market strategist Shay Boloor said Tesla added a record 260,000 FSD subscribers in the third quarter.
He estimated those additions could generate about $310 million in annualized revenue, potentially pushing FSD’s subscription revenue run rate above $2 billion.
Gene Munster Sees Long-Term Growth Potential
Deepwater Asset Management managing partner Gene Munster said FSD is increasingly influencing car-buying decisions, though he doesn’t believe it is yet a deciding factor for most consumers.
Munster also highlighted Tesla’s goal of producing 5 million vehicles annually starting in 2030, compared with an estimated 2 million in 2026. “Implies 25% compound growth through 2030.”
According to Benzinga Edge Stock Rankings, Tesla has positive short- and medium-term price trends but a negative long-term trend, while its Quality ranking is in the 53rd percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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