The battle for electric vehicle supremacy is heating up across Europe, and this year the headlines have taken a dramatic turn. BYD (BYDDY), a Chinese electric vehicle maker, has seen a six-fold increase in sales to overtake Tesla (TSLA) in the UK, while German figures show Tesla’s hold on the region is diminishing as BYD rapidly moves closer.
These shocks come even as Tesla moves beyond cars, pursuing a future blended with automation, robotics and what CEO Elon Musk calls “sustainable abundance.” Even with this strategic shift, Tesla pushed its revenue to $28.10 billion last quarter. Meanwhile, TSLA stock has surged 44% over the past year, trading at around $433 today.
As competition intensifies, technologies evolve and European consumers rethink their loyalty, a big question looms over the market. Is Tesla ready for a comeback, or is the pace of its competitors about to leave Tesla behind? Let’s go.
Tesla, a technology company that develops electric vehicles, autonomous driving software, energy storage systems and robotics, has a market capitalization of $1.48 trillion. TSLA stock is up 6% year to date (YTD) and 44% over the past 52 weeks.
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Its enterprise value stands at $1.48 trillion. This performance contrasts sharply with the sector median, where the P/E is 15.48x compared to 323.01x for Tesla, and the forward P/E reaches 409.19x compared to 16.56x for the sector. These ratios highlight market expectations regarding Tesla’s future growth and continued innovation.
This year, Tesla released its third quarter earnings report on October 22. The company reported revenue of $28.10 billion, beating analyst estimates and up from $25.18 billion last year. It generated adjusted earnings per share of $0.50, compared to expectations of $0.54.
Tesla’s net profit fell 37% to $1.37 billion from $2.17 billion last year. This was accompanied by operating cash flow reaching $6.2 billion and record free cash flow of nearly $4.0 billion. The company increased its cash and investments by $4.9 billion, now reaching a total of $41.6 billion. Automotive regulatory credit revenue fell 44%, now at $417 million, representing a major change for profitability. The end of this quarter coincided with the expiration of US tax credits for electric vehicles, causing a rush on sales ahead of the policy changes.
Tesla produced 447,000 vehicles and delivered 497,000, accompanied by record energy storage deployments of 12.5 GWh. This marks an operational success, but slowing demand in Europe casts a shadow. The region’s sales fell, influenced by CEO Musk’s public actions, competitive pressure from BYD and Volkswagen (VWAGY) and changing incentives.
October 2025 marked a milestone for Tesla. Version 14 of Full Self-Driving (FSD) has officially launched, expanding the autonomous pilot program in Austin. The company plans to operate vehicles without safety drivers by the end of the year. Paid robotaxi services are expected to be rolled out in ten major metropolitan areas in the United States, including Nevada, Florida and Arizona. The move demonstrates Tesla’s determination to commercialize autonomy at scale, with executives clarifying that regulatory and technical hurdles remain, but that a scalable deployment is underway.
The push toward robotics has strengthened. Tesla has announced rapid development of its humanoid robot, Optimus. A V3 prototype is planned for early 2026, and the company’s scalable lines could ultimately produce up to a million units per year. This ambition shifts Tesla’s focus from a purely automotive vision to a broader one. The strategy focuses on “sustainable abundance” by integrating energy storage, autonomous mobility and advanced robots.
Meanwhile, July brought a major supply deal with Samsung Electronics (SMSN.L.EB) valued at $16.5 billion. Samsung’s new factory in Texas will make Tesla’s AI6 chip. This chip is fundamental to the next generation of FSD, robotics and data centers, giving Tesla more autonomy in sourcing and innovation. The strategic focus on advanced technologies came just as Tesla’s internal structure began to change, with the high-profile departure of operational leader Omead Afshar in June.
The latest estimates from Tesla analysts paint a complex picture for investors. The average earnings estimate for the current quarter stands at $0.33 per share, down sharply from $0.66 a year ago. The outlook for the next quarter is $0.35, a big jump from $0.15 a year ago. Annual estimates tell a similar story. For fiscal 2025, Wall Street expects $1.14 per share, compared to last year’s figure of $2.04. FY 2026 is forecast at $1.92, up from $1.14. This translates to expected growth rates of -50% for the current quarter and -44.12% for the full year 2025. The next quarter and fiscal year 2026, however, show positive growth of 133.33% and 68.42%, reflecting optimism about Tesla’s recovery and technology initiatives.
The consensus of analysts underlines this uncertainty. All 42 experts surveyed on TSLA stock gave it a consensus rating of “Hold,” signaling caution amid industry volatility and changing market dynamics. The average price target is $383.35, approximately 12% below the current price.
Tesla remains in stuck territory as analysts expect mixed results and volatile developments. Most signs point to a limited rise over the coming months, particularly due to headwinds in Europe. Improvement could come if innovations or surprise sales arrive soon, but the risks remain high. Wait or wait is the safest call at this point.
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As of the date of publication, Ebube Jones did not have (directly or indirectly) any position in any of the securities mentioned in this article. All information and data contained in this article are for informational purposes only. This article was originally published on Barchart.com
