Elon Musk welcomes new good news

Tesla just set a third-quarter sales record with nearly 500,000 deliveries, while investors are betting on Elon Musk’s plans for Robotaxi and artificial intelligence (AI). However, the expiration of the US electric vehicle tax credit and controversy surrounding Musk’s huge pay package raise questions about the company’s future.

Tesla records record sales in third quarter

Tesla expects revenue of $ 26.27 billion in the third quarter of 2025 , up 4% year-over-year, with adjusted earnings per share (EPS) estimated at $0.53, or EBITDA of $3.78 billion. This comes after the company delivered 497,099 vehicles, far exceeding Bloomberg’s forecast of 439,800 and the 462,890 vehicles in the same period last year, setting a new record for a quarter.

In addition to vehicles, Tesla also deployed a record 12.5 GWh of energy storage products. However, this increase comes before the expiration of the US federal electric vehicle tax credit (September 30), causing Tesla to warn of “a few difficult quarters” ahead.

To maintain its reach, Tesla introduced “Standard” versions of the Model 3 and Model Y in early October. These two models are equipped with smaller motors, lower capacity batteries, and sell for $36,990 and $39,990, respectively. This helps Tesla maintain sales before the tax credit expires and creates a cushion for the Robotaxi in the future.

Elon Musk

How will robotaxi and AI ambitions affect Tesla?

Tesla has been testing Robotaxis in Austin, Texas, but still requires a safety driver in each car. The company is also testing a driverless ride-hailing service in the San Francisco Bay Area and plans to expand testing to Nevada and Arizona. Wedbush analyst Dan Ives sees AI, self-driving, and robotics as a key chapter in Tesla’s growth story, with a potential $1 trillion valuation over the next few years.

Barclays said Robotaxes are central to Tesla’s growth expectations. Investors are most interested in when Tesla will remove safety drivers from its Austin testing and its roadmap for mass production of Cybercabs/Optimus by 2026.

Shareholders concerned about Elon Musk’s pay package

Musk’s massive new $1 trillion pay package will be voted on by shareholders at the November 6 meeting. However, the package is currently mired in litigation in Delaware, with shareholders arguing they don’t have enough information to evaluate it. Independent advisers Glass Lewis and ISS have recommended rejecting the package.

The pay package controversy could weigh on investor sentiment, especially as Tesla moves toward ambitious projects like Robotaxi and AI.