Tesla's Q3 Surge Amid Model Price Cuts and Musk's Big AI Ambitions

Tesla is set to announce its third-quarter results, driven by a rush for U.S. EV tax credits. Key focus areas include the cheaper Model 3 and Model Y variants and Elon Musk's ambitious plans for robotaxis. Investors remain concerned about Tesla's margins and overall sales decline.

Tesla is poised to announce a significant surge in its third-quarter results, largely due to a rush from U.S. buyers eager to capitalize on the $7,500 federal EV tax credit. However, the spotlight is expected to be on CEO Elon Musk's insights regarding the company's future, particularly the new, cheaper variants of its Model 3 and Model Y.

These 'Standard' trims are priced $5,000 to $5,500 less than previous models by reducing the battery size, using a less-powerful motor, and removing various features. Despite these cost-cutting measures, Tesla's offers and global discounts have put pressure on its profit margins, causing investor unease.

With the results set to be announced after 4 p.m. EDT, and a conference call scheduled for 5:30 p.m. EDT, investors are keenly awaiting updates on Tesla's robotaxi project, considered crucial for the company's growth. Analysts predicted Tesla would report a 4.2% revenue increase year-over-year, alongside updates on regulatory credits sold.

(With inputs from agencies.)