The key facts

  • Tesla showed a flying Roadster: 10 nozzles and ultra-high-pressure air tanks, acceleration to ~97 km/h in less than a second (according to Elon Musk)
  • Shares fell more than 18% since the start of the year, the 5-year CDS spread reached 188.1 b.p. — the highest since May 2023
  • The Q3 report is expected on Wednesday: revenue forecast of $28 billion, EPS $0.45

The flying Roadster failed to support the shares

Tesla held a major presentation event at which it showed a flying version of the two-seat Roadster sports car. The car uses 10 nozzles and ultra-high-pressure compressed air tanks. During the demonstration, the car drove up a steep ramp, hovered upside down thanks to suction force, performed a somersault in the air, and jumped over a row of parked cars. According to CEO Elon Musk, the driverless car accelerated to about 97 km/h in less than a second. Despite the presentation, the company's shares faced a sell-off.

Pressure on shares and the debt market

According to Anadolu, Tesla shares have lost more than 18% since the beginning of the year amid concerns about being overvalued. In September, the shares fell 3.57%, and over the past week — another 7.3%. Investors are concerned about the company's market valuation, cash flows, and profitability. In the debt market, Tesla's five-year credit default swap (CDS) spread rose to 188.1 basis points — the highest level since May 2023. Analysts, as the outlet notes, warn that large-scale investments in robotaxis, the Optimus humanoid robot, and artificial intelligence infrastructure are blurring the timeline for reaching sustainable revenue.

Report expectations and operating figures

Market attention is focused on Tesla's Q3 report, which will be published on Wednesday after the close of trading in the US. Quarterly revenue is expected to be $28 billion, with earnings per share of $0.45. The figures will be published against the backdrop of strong production results: the company produced 464,391 cars (+3.8% year over year) and delivered 486,532 vehicles. In the EU, Tesla sales for January–August reached 142,165 units, up 65.9%; in August alone — 12,547 units (+52.7%), corresponding to 1.9% of all car sales in the region.