*

Tesla launched affordable models to widen market share

after tax

credit expiry

*

Tesla slashed lease prices on Premium variants amid fears

of

demand drop

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Q3 revenue seen rising 4.2% y-o-y to $26.24 bln - LSEG

data

*

Automotive gross margin, ex. reg credits, seen at 15.6% vs

17.05% year ago - LSEG

By Akash Sriram and Abhirup Roy

Oct 22 (Reuters) - Tesla is expected to post a

surge in third-quarter results on Thursday, thanks to U.S.

buyers rushing to take advantage of an expiring $7,500 federal

electric vehicle tax credit.

But investors and analysts may be more focused on Chief

Executive Elon Musk's outlook, including whether new, cheaper

versions of its Model 3 and Model Y Tesla can keep U.S.

customers buying and attract new ones in Europe and Asia.

The new trims - called Standard - are $5,000 to $5,500

cheaper than their predecessors as Tesla shrunk the battery,

switched to a less-powerful motor and stripped out a myriad of

features - from rear touchscreens to seat-back pockets. The

company also temporarily has slashed lease prices on the

higher-priced Premium versions.

The cheaper Standard variants as well as Tesla's offers and

discounts to stave off competition globally throughout the year

have pressured the company's once-enviable margins, worrying

investors.

Sales of Tesla's aging lineup declined for the first time last

year and analysts expect an 8.5% fall this year, in part because

of Musk's far-right political rhetoric.

ROBOTAXIS ROLLOUT UPDATE

Musk also will be expected to update on robotaxis, the

project that he sees as the key to Tesla's next stage of growth.

Musk has said Tesla's robotaxis will serve half the population

of the U.S. by year-end.

"What are the relevant metrics - fleet size, cumulative

miles, and territories - you expect in Q4 and 2026?" was the top

question for the CEO in a note by analysts at Cantor Fitzgerald

on Tuesday.

While Musk has pivoted Tesla's focus to robotics and

artificial intelligence and much of the company's $1.4 trillion

valuation hangs on that bet, most of its current revenue and

profit comes from vehicle sales.

Analysts expect Tesla to report a revenue of $26.24 billion

in the quarter ended September, up 4.2% from a year earlier,

according to data compiled by LSEG. Tesla also will report on

whether regulatory credits that it sold to makers of

gasoline-powered cars to satisfy pollution standards have faded

away after policy changes by the Trump administration.

Automotive gross margin, excluding regulatory credits, is

estimated to be 15.6%, according to 19 analysts polled by

Visible Alpha. That is lower than 17.05%, a year earlier.