Tesla Stock Is Trading Lower Thursday: What's Driving The Action?

Tesla Inc (NASDAQ:TSLA) shares are trading lower on Thursday on the heels of the company’s third-quarter results, which were released after the market close on Wednesday. Here’s a look at what you need to know.

• TSLA is feeling the pressure from bearish momentum. Get the complete picture here.

What To Know: Tesla reported third-quarter revenue of $28.10 billion, beating analyst estimates of $26.24 billion, according to Benzinga Pro. The company reported third-quarter adjusted earnings of 50 cents per share, missing estimates of 54 cents per share.

Total revenue increased 12% year-over-year as automotive revenue climbed 6% year-over-year to $21.2 billion. Tesla said it produced 447,450 vehicles in the third quarter and delivered 497,099 vehicles with growth across all regions.

Shares moved lower when the report was released and continued to move lower during the earnings call as CEO Elon Musk talked about Tesla's AI strategy, including Optimus and the company’s robotaxi vision. Musk also used some of the call to urge investors to vote for his proposed compensation package.

Tesla said in the third-quarter report that it faces near-term uncertainty due to shifting trade, tariff and fiscal policy, but noted that the company is focused on long-term growth and value creation.

“We are prudently making the necessary investments in our business, including future business lines, that we believe will drive incredible value for Tesla and the world across transport, energy and robotics,” the company said.

“We believe our scale and cost structure will enable us to navigate the shifting market dynamics across the globe more effectively than our peers, with advances in AI making our products the most compelling in the market.”

Tesla’s Cybercab, Semi and Megapack 3 are currently on track for volume production next year. Tesla also said its first-gen production lines for Optimus are being installed in anticipation of volume production.

Following Tesla’s quarterly results, Cantor Fitzgerald analyst Andres Sheppard maintained an Overweight rating and raised the price target from $355 to $510. Needham analyst Chris Pierce also reiterated Tesla with a Hold rating.

TSLA Price Action: Tesla shares were down 3.36% at $424.23 at the time of publication on Thursday, according to Benzinga Pro. Despite Thursday’s decline, the stock is still up more than 100% over a one-year period.

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Photo: courtesy of Tesla.