By skyforbes 
Tesla released its third-quarter earnings report this morning, showing revenue growth but profits falling short of market expectations, with the stock dropping nearly 4% after hours. CEO Elon Musk campaigned for his $1 trillion compensation package during the earnings call. Additionally, the company’s Bitcoin holdings have risen to a value of $1.3 billion.
Tesla’s Q3 Revenue Grows, But Profits Fall Short of Market Expectations
Tesla announced its third-quarter earnings yesterday (10/22), with adjusted earnings per share (EPS) at $0.50, a sharp 31% decline from the same period last year and below the analysts’ average estimate of $0.54. The profit decline reflects the impact of electric vehicle price cuts, tariff pressures, and a significant increase in operating expenses.
Tesla’s revenue for the quarter grew 12% year-over-year to $28.1 billion, reversing the downward trend from the previous two quarters. This was primarily driven by the impending expiration of U.S. electric vehicle tax credits at the end of September, which boosted demand. Energy storage deployments reached a record 12.5 GWh, benefiting from demand from clients like xAI, indicating progress in diversifying non-automotive businesses. The increased revenue contribution from energy products helps buffer the pressure on automotive gross margins.
Musk stated that the company expects to launch Robotaxi services in 8–10 cities by the end of 2025, with millions of Tesla vehicles achieving full self-driving by the second half of 2026. Owners will be able to add their vehicles to the Robotaxi fleet in 2026.
However, production of the Optimus humanoid robot has been delayed. Musk self-deprecatingly remarked, “Optimus could become the greatest product of all time, but you can’t buy it yet.”
Tesla Holds $1.3 Billion in Bitcoin
According to Tesla’s third-quarter 2025 earnings report, the company’s Bitcoin holdings have risen to a market value of $1.315 billion, primarily due to the cryptocurrency’s price increase this quarter and the new accounting rules implemented by the Financial Accounting Standards Board (FASB) starting in 2025. These rules allow companies to value crypto assets at fair market value on a quarterly basis, replacing the previous method of recording them at the lowest holding value.
Benefiting from Bitcoin’s rise, Tesla recognized $80 million in unrealized gains this quarter. However, Tesla excluded this from its adjusted EPS, demonstrating the company’s determination not to let Bitcoin’s volatility significantly affect its financial figures.
According to Arkham data, the company holds approximately 11,509 BTC, which has remained unchanged since mid-2022.
Musk Campaigns for $1 Trillion Compensation Package
At the end of Tesla’s earnings conference call, Musk pleaded with investors to approve his upcoming $1 trillion compensation package and harshly criticized shareholder advisory firms opposing the plan. Tesla shareholders will vote on the compensation package at the annual shareholder meeting in Austin on November 6.
Musk said, “I’m here building an army of robots, and then getting kicked out because of some stupid advice from ISS and Glass Lewis makes me uncomfortable — they don’t understand these suggestions at all.” He was referring to proxy advisory services that do not vote in the best interests of shareholders. Previously, Ark Invest CEO Cathie Wood publicly supported Musk’s new 10-year compensation package and criticized large asset managers for wielding enormous influence in voting while overly relying on proxy advisory firms, leading to a loss of independence in decision-making.
Musk receives no base salary at the company and relies entirely on equity incentives for dividends. If this 10-year compensation package achieves its targets, Musk could receive up to $1 trillion in benefits, pushing Tesla’s target market capitalization to $8.5 trillion, which would imply a TSLA stock price of $2,300.
Since the financial performance does not fully support the compensation package, it is instead being promoted as a means to retain Musk. The relatively subdued conference call concluded with Tesla CFO Vaibhav Taneja urging shareholders to vote in support of Musk’s package, downplaying the bonus amount and repositioning it as a way for Musk to gain greater control.
Tesla (TSLA) Drops Nearly 4% After Hours
Tesla’s price-to-earnings ratio exceeding 200 reflects investors’ high expectations for Musk, but even minor fluctuations can cause stock volatility. TSLA fell nearly 4% after hours following the earnings release, with the stock up only about 9% year-to-date, still lagging behind major indices and most large tech stocks.
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