Tesla is set to report its third-quarter earnings after the market closes on Wednesday. Analysts and investors will be paying close attention to every statement CEO Elon Musk makes during the conference call discussing the results. Determining what to focus on isn’t always straightforward, but several key areas should take precedence. Starting with headline numbers is a reliable approach. According to FactSet, Wall Street expects earnings per share of 56 cents on sales of $27. 3 billion. Tesla needs to surpass both targets. On October 2, the company announced it had delivered a record 497, 099 vehicles in the third quarter—about 54, 000 more than analysts predicted. This volume equates to roughly $2. 4 billion in sales. However, Wall Street’s estimate for total automotive sales remains at approximately $20. 6 billion, only a $600 million increase since the delivery announcement. These estimates have yet to be revised to reflect the better-than-expected deliveries. Analysts don’t always update forecasts immediately, which can contribute to a “beat. ” Investors should also scrutinize automotive gross profit margins excluding regulatory credit sales. Wall Street forecasts a 15. 5% margin for the quarter, compared to Tesla’s reported 15% margin in the previous quarter. Notably, automotive margins net of credits peaked at 30% in Q1 2022. Comments from management regarding margins will be important, especially since the U. S.

electric vehicle industry recently lost the $7, 500 federal purchase tax credit, which makes EVs more costly. The impact on demand and profitability remains uncertain. In response, Tesla introduced more affordable “standard” versions of its Model Y and Model 3 earlier this month, partially addressing the lost credit. Investors will want updates on how orders for these models are developing. There will also be significant interest in any remarks about artificial intelligence. Tesla employs AI to train its self-driving cars and humanoid robots to perform practical tasks. In July, Tesla launched a self-driving taxi service in Austin, Texas. While the company has expanded the service's coverage area within Austin, no new cities have been added. The pace at which Tesla can safely scale its “robotaxi” service remains a major concern for investors. Updates regarding the company’s robot initiatives will also be welcome, as significant sales are anticipated by 2026. However, exact timing and volume remain difficult to predict. If Tesla delivers positive news across these five areas, its stock would likely rise following the earnings release. However, precisely what management must say and how shares will respond cannot be forecasted with certainty. Entering Wednesday’s trading session, Tesla shares have increased 95% over the past six months, while earnings estimates for 2026 have declined by about 33% during the same period.