**Tesla's Q3 Earnings: An Opportunity to Regain Investor Confidence**

Tesla's Robotaxi event failed to impress investors, leaving the electric vehicle giant under pressure to restore market sentiment. The company now looks toward its Q3 earnings report, set to be released tomorrow after the market closes, as a pivotal opportunity.

Wedbush analyst Daniel Ives underscores the importance of Tesla demonstrating progress on its profit margins to regain trust. Ives notes that the financial community is seeking stability in Auto GMs (excluding credits) and hopes for a path toward a 20% margin threshold by 2025. For Tesla, hitting the high teens in profit margins for Q3 and Q4 would signal to investors that the worst of the price cuts are over and more profitable days are ahead.

Ives projects strong growth in China, fueled by favorable leasing and financing options and pent-up demand. He forecasts that Q4 will continue to build on the momentum from a record-breaking end of Q3. While macroeconomic challenges and subsidy issues persist in Europe, Ives believes the situation will balance out through stable U.S. demand and growing interest in other regions. China, however, is expected to be the standout region this quarter.

Investor disappointment from the recent Robotaxi Day has left many craving more details on Tesla's autonomous and AI strategy. Ives predicts that CEO Elon Musk will provide additional clarity on the timing and specifics of Full Self-Driving (FSD) technology and Cybercab plans during the upcoming earnings call. Additionally, there may be updates on the highly anticipated sub-$30,000 vehicle, which Ives believes could debut in mid-2025.

Despite the challenges, Ives is optimistic about Tesla's near-term performance, expecting Q3 results to generally meet expectations with potential for slight margin improvements. He is among 10 analysts who rate Tesla as a Buy, although they contend with 16 Hold ratings and 8 Sells, culminating in a consensus rating of Hold. The average price target of $207.83 suggests a potential stock decline of around 5% from current levels.

Ives continues to advocate for caution, reminding investors to conduct their own analyses before making any decisions.