Tesla’s AI and Robotics Future Shines Brighter Than Q3 Earnings

Goldman Sachs has suggested that Tesla’s upcoming Q3 earnings, due on October 21, may take a backseat to updates on its AI and robotics ventures. The firm maintained a 'Neutral' rating with a $360 price target, indicating a 6% potential downside from current levels. Despite recent stock gains, TSLA shares rose around 1% at the time of writing, Goldman Sachs emphasizes that investor focus will likely center on Tesla’s Full Self-Driving (FSD) progress, robotaxi deployment, and Optimus humanoid robot advancements.

Tesla has made strides in expanding FSD (Supervised) approvals, with Croatia joining the Netherlands, Belgium, and Slovenia. However, an EU-wide vote on FSD approval has been delayed until December. Meanwhile, Tesla’s robotaxi initiative is progressing, with its Cybercab now in limited service in Austin and operations extending to seven major U.S. metros by Q2’s end. Additionally, Tesla is scaling up Optimus production at its Fremont factory, though Elon Musk has cautioned about the challenges of mass-producing the humanoid robot.

The company’s capital expenditures are also a key point, with Tesla expecting full-year 2026 spending to exceed $25 billion. This includes investments in AI compute, robotaxis, Optimus, semiconductor manufacturing, and factory expansions. Goldman Sachs anticipates stronger revenue momentum from Tesla’s vehicle business but warns that rising costs and capital spending could limit earnings growth. Despite these concerns, TSLA shares have climbed over 28% since hitting a July low of $297.38.