Buy Hold Rant

Is Tesla Running Out of Growth? Earnings Explained.

Name: Is Tesla Running Out of Growth? Earnings Explained.
Uploaded: 2025-10-22T23:41:11Z
Description: Tesla (TSLA) reported earnings this week with a strong revenue beat of $28.1B, but a flat EPS, causing a slight dip in the stock. In this clip from the Buy Hold Rant podcast, Hamid and Dustin break down why revenue surged (hint: the $7,500 EV tax credit is going away) and why Q4 is expected to decli

10/22/2025, 11:41:11 PM

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Economic Summary

Tesla (TSLA) reported Q3 revenue of $28.1 billion versus an estimate of $26.5 billion and EPS in line at $0.50, producing a modest stock reaction.
The $7,500 EV tax credit expiry appears to have pulled demand forward, helping Q3 revenue but implying milder expectations and likely revenue decline in Q4.
There are limited near-term revenue catalysts: no new mass-market models imminent, Optimus and robo-taxi revenues expected to be relatively small initially, and energy growth is a smaller but noted upside.
Valuation concerns: the company is trading at very high market-cap levels relative to trailing revenue (discussion cited ~ $1.5T market cap vs ~$95B revenue) and there is precedent for multi-quarter revenue stagnation.

Bullish

Long-term opportunity from energy business and future products.
Revenue beat this quarter versus estimates.
Potential low-cost robo‑taxi or two-seater could be a major catalyst.

Bearish

Short-term delivery and revenue declines likely after $7,500 EV tax credit expiration.
Lack of new vehicle models and recent product innovation could limit near-term growth.
Valuation appears rich compared with fundamentals (market cap far exceeds revenue).

Bullish tickers

TSLA

Bearish tickers

TSLA

Bullish

Q3 revenue beat and growing energy business provide upside; long-term optionality from robo-taxi or a low-cost two-seater could be significant if realized.

Bearish

Concerns about near-term deliveries, lack of new vehicle models, and a likely Q4 revenue decline after tax-credit-driven demand; valuation appears stretched versus revenue.

IBM

Bullish

Reported earnings today; no details in transcript to indicate specific positives.

Bearish

Earnings were mentioned as reported but no specifics discussed to identify downside drivers.

AAPL

Bullish

Used as an example of rapid product launches, implying autos cannot replicate that speed.

Bearish

Mentioned only as a contrast: automotive products face longer regulatory and testing cycles than consumer tech.