Jefferies analyst Philippe Houchois maintained a Hold rating on Tesla with a price target of $375.00, according to a TipRanks report. The article notes that Evercore ISI issued a Hold on October 26, while Bank of America Securities maintained a Buy rating on October 29. For the quarter ended September 30, Tesla reported revenue of $28.05 billion and net profit of $787 million, against $28.1 billion and $1.37 billion a year earlier.
Jason Calacanis, a Tesla shareholder who disclosed buying 3,000 shares late last month, said on This Week in Startups that after the midterms Democrats will "block autonomy," calling it a bigger risk for tech than data centers. The article says the risk is larger for Tesla than for Alphabet's Waymo because Elon Musk says Cybercab will dominate only where the law allows. It also notes that Tesla trades at 177x forward earnings against a five-year average of 108x, and that analysts' 2028 EPS estimate of $3.24 is below what the company earned in 2022.
Tesla plans to wind down Cybertruck production at Gigafactory Texas around mid-2027 to free space for Cybercab output, CEO Elon Musk said, adding that an extra shift will be added to fill the backlog before the line is dismantled around June or July. Musk also outlined a future 40 kWh Cybercab battery pack. Separately, Nikkei reported that Terafab targets a capacity of 1 million wafers a month from 2032 onward, split between memory and logic chips. The stock slipped nearly 1% overnight, after jumping 4% to $358.22 on Monday following a 10% slide last week.
Tesla announced it expanded the footprint of its Robotaxi service by 62.5%, updating the geofence to a larger active service area. San Antonio is now live as a completely new area where Robotaxi operates. Tesla shares jumped over 5% in Monday afternoon trading, and the stock has seen a 19.54% loss in its share price over the past year.
Tesla's next-generation Roadster made its delayed debut on October 15 at a SpaceX test site in Texas, where a prototype demonstrated thrusters; Tesla said the car could accelerate from zero to 60 mph in less than a second and Musk said production is planned for 2028, with no final price announced. The article says the reveal did little to move Tesla's stock, while speculation that Tesla and SpaceX could merge has drawn more attention. CNBC reported SpaceX was valued at about $2 trillion versus Tesla's roughly $1.4 trillion market capitalization, and Barclays analyst Dan Levy reportedly predicted a transaction could happen before the end of 2026.
ARK Invest's Cathie Wood said in a CNBC interview at the UP.Summit that ARK has been buying Tesla and SpaceX shares during the recent pullback, adding that Tesla's Robotaxi business is beginning to deliver on its promise. Tesla shares gained more than 4% in Friday's regular trading, while SpaceX shares surged nearly 9%. Wood said Tesla and SpaceX are among ARK's highest-conviction holdings.
Over 75% of Tesla's new North American deliveries in the third quarter came with FSD (Supervised), up from over 55% in the second quarter, and early Tesla investor Steve Jurvetson predicted on X that the attach rate will trend to 100%. The article says FSD is nearing $1 billion of annual recurring revenue, about 1% of Tesla's sales, and that an RBC analyst estimated the paid subscription rate at 30% to 40%. Tesla fell 3.3% on Nov. 4 and another 10.8% on Nov. 5, closing at $343.69, after Democrats swept Congress in the Nov. 3 midterms.
The article says Tesla's third-quarter revenue was essentially flat and profit fell 43%, while research and development spending rose 69% to $2.76 billion for robot development with no material robotics revenue reported in the third-quarter filings. It notes that Elon Musk's one-million-robot goals are tied to his pay package and a possible Tesla-SpaceX merger. The author says the shares trade at roughly 400 times trailing earnings and remains cautious until robot revenue materializes.
On Schwab Network, Luke Lloyd said the market did not price in a Democratic sweep of the House and Senate before the midterm results and that he remains bullish on the AI infrastructure trade despite heavy selling in the S&P 500 and Nasdaq-100. He added that a merger between SpaceX and Tesla is still possible despite an increased risk of regulatory overhangs.
Analyst Dan Ives, a partner at Yorkville Ives & Co., said a potential Tesla-SpaceX merger has been thrown into doubt after the U.S. midterms, saying Democrats who now control the House and Senate make the deal harder to complete in 2027. With most ballots counted, Democrats hold 54 Senate seats versus 44 for Republicans, and in the House they are on track to win more than 250 seats. Musk said on SpaceX's third-quarter earnings call in October that a merger with Tesla would be a "good idea" and that special committees at the two companies were exploring a potential deal.
Tesla shares fell 11.14% after Democrats took control of the House and Senate, raising concerns about hurdles for autonomy, energy storage and regulatory execution. Operating income fell to $718 million from $1.62 billion as capex jumped 111%, with about $20 billion of spending guided this year. Active FSD subscriptions reached 1.74 million, up from 1.04 million a year earlier, and adjusted EPS of $0.48 beat the $0.4511 estimate.
Elon Musk wrote on X that Tesla "will be winding down production of the Cybertruck at Gigafactory Texas around the middle of next year to make room for increased Cybercab production." Tesla's "other models" line, which includes the Cybertruck, Model S and Model X, delivered 8,295 vehicles in the third quarter, under 2% of its 486,532 deliveries, against Musk's earlier prediction of 250,000 Cybertruck sales a year. Tesla shares rose 5%, and the article notes analysts expect normalized EPS to climb from $1.66 in 2025 to $3.24 in 2028 while investors were paying 189x forward earnings versus a five-year average of 108x.
