Tesla's deteriorating earnings and automotive revenue undermine its growth story. In Q3 2026, automotive revenue fell 3% year over year, operating income fell 56%, and diluted EPS fell 44%, while total revenue was flat. x.com 

Tesla's falling energy and storage revenue undercuts what bulls call its next growth case. In Q3, that revenue fell 16% year over year; auto revenue fell 3%, operating income 56%, GAAP net income 43%, GAAP EPS 44% and free cash flow 62%. These terrible results make $500 a share look unlikely, even though the stock has not fallen 20%. x.com  x.com 

Tesla's stronger gross margin and automotive revenue suggest its car business is healthier than bears expected. Gross margin was 19.6% versus 17.8% expected; automotive revenue beat by over $700M, following 486,532 deliveries versus roughly 462,000 expected. Total revenue missed slightly, likely outside autos. Cybercab, unsupervised FSD and Optimus remain the key call tests. Overweight, $697 target with 80% upside. x.com  x.com 

Tesla's stagnant car business and rising AI and robotics spending are squeezing current earnings before those bets have paid off. Q3 revenue was flat as auto sales slipped and regulatory credits collapsed; operating expenses rose 39%, operating income fell 56%, and EPS dropped from $0.43 to $0.24. The spend-now, profit-later strategy is testing investors' patience. x.com 

Tesla's falling automotive revenue and shrinking energy business undermine its growth-company case. In Q3 2026, automotive revenue fell 3% year over year and energy revenue fell 16%; operating margin was 2.6%, and revenue missed expectations. These numbers are pathetic even for a mature business and embarrassing for a growth darling. SpaceX has to buy Tesla to mask a weak business inside a stronger one, as Musk did with SolarCity. x.com  x.com  x.com 

Tesla's growing FSD subscriber base supports the longer-term autonomy case, but the AI build is taxing cash now. Paid FSD seats reached about 1.74 million, up 67%, while free cash flow fell 62% to $1.53 billion despite an EPS and sales beat. Post-report weakness is a discount discussion only for holders able to weather another weak cash quarter; check FSD net adds and FCF before leaning hard. A possible SpaceX combination is not part of this case. x.com 

Tesla's operating profit keeps shrinking even as revenue rebounds, making it look like a weak cyclical automaker. S&P Capital IQ shows 2025 revenue falling 2.9% to $94.8 billion and EBIT dropping from $7.7 billion in 2024 to $4.4 billion in 2025; latest twelve-month revenue reaches $103.6 billion while EBIT falls further to $3.1 billion. x.com 

Tesla's declining operating income and margins make it crazy to invest at a 300x P/E. Per @scidood, operating income fell from $13.7B in 2022 to $4.4B in 2025 and stood at $2.1B through Q3 2026; operating margin fell from 16.8% in 2022 to 2.7% through Q3 2026. x.com 

Tesla's upside is a robotaxi and Optimus bet, not a story about rising profits. Net income has dropped from about $15B to $3.8B in two years, and free cash flow turns negative this year on $25B of capex, so the current P&L does not support the claim that Tesla is becoming ever more profitable. x.com 

Tesla's Q3 earnings beat came from tariff refunds, not operations. The Supreme Court's IEEPA ruling let Tesla book $786M in refunds, less $339M owed to storage customers: $447M or 62% of Q3 operating income. Without that, GAAP EPS was $0.12 versus $0.20 estimated and operating margin 1.0%. Gross profit is not keeping pace with spending. Tesla trades at 500x trailing earnings versus 32x for the Mag-6 despite falling Q3 revenue, EBIT down 56% year on year and reduced capex. x.com  x.com  x.com  x.com  … Show more