Tesla Stock Extends Rally After Q3 Delivery Beat as Investors Turn Focus to Key Oct. 21 Earnings Report

NEW YORK — Tesla shares rose for a second straight session Monday, building on Friday's jump after the electric vehicle maker reported third-quarter deliveries that beat Wall Street expectations.

The stock gained $7.57, or 2.04%, to $378.16 in morning trading on the Nasdaq. Shares closed Friday at $370.59 after rising 4.65%, their biggest one-day gain in weeks.

Over the two sessions, Tesla stock has climbed nearly 7% from Thursday's close of $354.11, adding tens of billions of dollars to the company's market value. Tesla was valued at about $1.46 trillion at Friday's close.

Deliveries top forecasts

The rally began Friday after Tesla said it delivered 486,532 vehicles worldwide in the July-September quarter.

That beat the average analyst estimate of 463,761 compiled by FactSet, according to Forbes, and topped a company-compiled consensus of 461,974 based on 24 analyst estimates. Deliveries were also up from 480,126 in the second quarter.

However, the figure was slightly below the 497,099 vehicles Tesla delivered in the third quarter of 2025, a period when U.S. buyers rushed to purchase electric vehicles before a federal tax credit expired at the end of September.

The Model 3 sedan and Model Y SUV accounted for the vast majority of deliveries, about 98%.

The stronger-than-expected results eased some concerns about demand after Tesla posted consecutive annual declines in vehicle sales and faced growing competition from Chinese automakers such as BYD.

Energy storage falls short

Tesla's energy business, which has been one of its fastest-growing segments, was less impressive.

The company deployed 13.7 gigawatt-hours of energy storage products in the third quarter. That was up slightly from 13.5 gigawatt-hours in the second quarter but below analysts' average forecast of 15.9 gigawatt-hours.

Tesla's battery storage products, including the Megapack, are used by utilities and businesses, and demand has risen as data centers and power grids seek more capacity.

Earnings take center stage

With deliveries out of the way, investors are turning their attention to Tesla's third-quarter earnings report, scheduled for Oct. 21.

Analysts will be watching closely for signs of improvement in profit margins, which have come under pressure from price cuts, heavy spending and competition.

Tesla's second-quarter results in July disappointed investors. Revenue rose 25.5% to about $28 billion on record deliveries, but operating margin fell to just 1.4%. Free cash flow turned negative at about $1.09 billion as the company spent heavily on artificial intelligence, autonomous driving and robotics.

Capital expenditures totaled $5.8 billion in the second quarter.

Tesla's automotive gross margin, excluding regulatory credits, fell to 16.3% from 19.2% in the first quarter, according to the company's shareholder update.

The company reported adjusted earnings of 33 cents per share in the second quarter, missing the consensus estimate of 45 cents. The results wiped about $71 billion from Tesla's market value in a single session.

Investors will also look for updates on Tesla's robotaxi service, its Full Self-Driving software subscriptions and the Optimus humanoid robot.

Robotaxi ambitions

Much of Tesla's valuation rests on investor optimism about autonomous driving and robotics rather than its core car business.

The company launched a limited robotaxi service in Austin, Texas, in June 2025 and has since expanded to other markets, including Miami. Tesla has also begun testing rides without safety monitors in some vehicles.

CEO Elon Musk has said material revenue from robotaxis is unlikely before 2027. Tesla still trails Alphabet's Waymo, which operates a much larger commercial robotaxi fleet across several U.S. cities.

Tesla is also preparing production of the Cybercab, a dedicated robotaxi without a steering wheel or pedals.

Analysts divided

Wall Street remains split on the stock.

According to MarketBeat, 47 analysts cover Tesla, with one strong buy rating, 22 buy ratings and 20 hold ratings, along with several sell ratings. The average 12-month price target is $410.98, about 9% above Monday's trading price.

Price targets vary widely, from a high of $840 to a low of about $25, reflecting deep disagreement over Tesla's future.

Bulls argue that Tesla's investments in AI, autonomous driving and robotics could unlock enormous value. Bears point to the stock's high valuation, which stands at roughly 372 times trailing earnings, along with weakening margins and negative cash flow.

Wells Fargo analyst Colin Langan recently reiterated his rating on the stock, according to MarketBeat.

Stock still down for the year

Despite the recent gains, Tesla shares remain down about 16% so far this year. The stock has been volatile, swinging sharply on earnings, delivery reports and news about Musk.

Tesla shares fell sharply after second-quarter earnings in July before recovering in recent weeks. The stock gained nearly 10% over the four weeks leading into Friday's delivery report.

Musk's fortune rises

The rally has also boosted Musk's personal wealth. Musk, the world's richest person, owns a large stake in Tesla and is also the largest shareholder of SpaceX.

Forbes estimated Musk's net worth at nearly $980 billion after Friday's gains in Tesla and SpaceX shares.

Broader market

Tesla's gains came as the broader U.S. stock market was mixed Monday. Investors are awaiting minutes from the Federal Reserve's September meeting, due Wednesday, for clues about the path of interest rates.

Friday's weaker-than-expected jobs report eased concerns that the Fed could raise interest rates soon, helping lift growth stocks, including Tesla.

Higher interest rates tend to weigh on growth stocks like Tesla, whose valuations depend heavily on expectations of future profits.

Tesla is scheduled to release its third-quarter results after the market closes on Oct. 21, followed by a conference call with Musk and other executives.