The cheaper Standard variants and Tesla's offers and discounts to stave off competition globally have pressured the company's once-enviable margins, worrying investors.

Tesla posted record quarterly revenue but its profit came in below Wall Street's expectations. The stock fell 4% after hours during the analyst call.

Tesla buyers rushing to take advantage of a $7,500 tax credit before it was eliminated by Donald Trump's omnibus spending bill saw Q3 revenue hit a new record.

Operating margin was reported at 5.8% of sales, falling sharply from last year's mark of 10.8% but improving on a sequential basis. Total GAAP gross margin was 18.0% vs. 19.8% a year ago and 17.2% in the prior quarter. Operating income was down 40% year-over-year to $1.62 billion vs. $1.65 billion consensus.

Tesla will report earnings on Wednesday after the closing bell, and a few key areas will be in focus. Tesla's stock has been volatile in 2025, with a 100% rally after an initial steep decline.Analysts are keen to hear updates on AI,

Dow futures steady as investors await Tesla Q3 earnings; mixed global markets and key macro headlines in focus.

Tesla faces declining EV sales from eroding pricing power and intensifying competition. Learn why TSLA stock is a Sell.

US DC fast-charging port numbers top 64,000 as Tesla leads Q3 growth, and reliability and pricing trends show a maturing market.