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Tesla is on deck to report its third-quarter earnings after the closing bell.
Analysts are upbeat after the Roadster reveal, and are seeking updates on Tesla’s other projects.
Investors want clues about a potential merger with SpaceX and updates for its AI ambitions.
Analysts are going into Tesla’s earnings feeling upbeat.
Days after unveiling the long-awaited Roadster , Tesla is on deck to report financials for the third quarter. Investors and analysts are headed into the call feeling good, even if the Roadster isn’t expected to be a major sales driver.
Wall Street got a major signal pointing to a merger with SpaceX when Elon Musk said during rocket company’s earnings on Tuesday that a committee had been established to explore a potential tie-up with Tesla.
In addition to any more clues about a merger, analysts are also listening for info on capex as Tesla increasingly becomes an AI spending story. Tesla’s AI-related projects will be in the spotlight, as well as a potential merger with SpaceX , whispers of which have been circulating since Elon Musk’s rocket company went public this summer.
Tesla recently beat estimates for deliveries , adding to the positive buzz heading into the results. Tesla sold 486,532 vehicles last quarter, well ahead of the 461,974 vehicles expected, though deliveries are down 2% on a year-over-year basis.
It’s been a rough year for Tesla, which has been hit by concerns about its profit margins, progress on its AI projects, and a US slowdown in the electric vehicles space. Tesla shares traded around $373 on Tuesday, down 14% year-to-date and 22% lower from its all-time high in late 2025.
Here’s what Wall Street is saying ahead of the company’s earnings report:
Tesla is approaching its ‘golden era’: Yorkville Ives & Co
Tesla could be in the midst of its “golden era,” Yorkville Ives & Co said.
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Tesla remains one of the market’s “clearest” plays in the physical AI space, analysts at Yorkville Ives & Co said.
“The Golden Age of Tesla Is Just Beginning; Autonomy and Robotics Lead the Way,” a team led by Dan Ives, a senior managing director at Yorkville and a longtime tech bull, wrote in a recent note. “We continue to see Tesla as a physical AI platform with a vehicle business underneath it,” he added in a separate note.
Tesla’s Roadster is unlikely to “move the needle” when it comes to investors’ growth expectations, given that production is limited, Ives said. Still, its recent release has helped “restore the brand halo,” he added, referring to how attention has started to shift toward Tesla’s engineering stack.
Ives also floated a potential Tesla-SpaceX merger , pegging an 80% chance the companies could be joined by the end of next year for strategic and data-related reasons.
The firm reiterated its “outperform” rating on Tesla and $500 price target, implying 34% upside from the stock’s current levels.
Tesla stock is “slightly undervalued”: Morningstar
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Seth Goldstein, an analyst at Morningstar, called the Roadster Tesla’s “new halo car.”
“A high-end sports car that is the fastest car in the world and that can temporarily fly does a great job highlighting Tesla as a unique luxury car company, which should draw consumers to Tesla vehicles and could support increased deliveries once the car enters production in 2028,” he wrote in a note following the Roadster unveiling.
The firm said Tesla shares were “slightly undervalued,” pointing to both excitement from the Roadster as well as Tesla’s delivery growth, which appeared to be driven by its full self-driving technology , Goldstein said in a separate note.
Morningstar said investors would likely continue tofocus on the company’s near-term guidance for its robotaxi and humanoid robot products. The firm reiterated its 3-star rating on Tesla and its fair value estimate of $450, implying 20% upside for shares.
Stock doesn’t reflect company’s full growth potential: RBC Capital Markets
Tesla stock likely doesn’t reflect the company’s full growth potential, RBC says
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RBC highlighted a Tesla-SpaceX merger as a potential catalyst, and suggested that Tesla shares could be underpriced if a merger is down the line. If SpaceX acquires Tesla, a share price of $480 for the car company could be reasonable, implying a 30% premium on Tesla’s current stock, analysts led by Tom Narayan wrote in a client note last week.
“From SpaceX’s perspective, a potential merger at current valuations may not fully reflect intrinsic value and do not, in our view, adequately credit the company’s FY29E-31E growth potential,” analysts said.
“While we have no knowledge of a transaction or potential timing, we continue to see compelling long-term growth potential and meaningful synergies from a combination,” they added.
The firm maintains an “Outperform” rating on Tesla.
Merger between SpaceX and Tesla is likely: Cantor
Elon Musk leading a demonstration at SpaceX’s headquarters
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Cantor said it was bullish on Tesla heading into earnings, later pointing to better-than-expected deliveries for the third quarter. The Roadster, while “breathtaking,” is unlikely to contribute meaningfully to Tesla’s bottom line at this point, analysts wrote in a note.
The firm said it believed investors would remain focused on issues such as Tesla’s expansion of its robotaxi fleet , full self-driving adoption, and production updates for Optimus Gen 3.
The likelihood and timing of a merger between SpaceX and Tesla will also be on investors’ radars. Though management is unlikely to comment on the matter during the earnings call, the merger itself is “likely,” analysts said.
The firm maintained its “Overweight rating on Tesla and issued a $485 price target, implying 30% upside from current levels.
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