Tesla (TSLA) Q4 EPS Results
EPS: $0.50 actual vs. $0.45 expected (beat by 11%); down 32% year-over-year.
Revenue: $24.901 billion actual vs. $24.78 billion expected; down 3% year-over-year.
Operating Income: $1.41 billion vs. $1.32 billion estimated.
Q4 Deliveries Drop
Q4 vehicle deliveries fell by 15.6%, though margins increased by 4% amid a slowdown in sales affecting Tesla’s legacy EV business.
Tesla to Acquire $2B of Preferred Stock in xAI
Tesla announced a $2 billion investment in Elon Musk’s xAI, which has rapidly scaled to a $230 billion valuation, attributed to a $20 billion Series E round and significant user growth.
Tesla Energy Performance
Tesla Energy achieved a record gross profit of $1.1 billion in Q4, marking its fifth consecutive record quarter, with future production of Megapack 3 and Megablock planned at the Megafactory in Houston.
Key Future Developments
Tesla confirmed the launch timelines for the Optimus Humanoid robot and production ramps of the Tesla Semi and Cybercab in 2026, alongside ongoing expansion of its Robotaxi fleet, which has driven 650,000 miles since June 2025.
FSD Subscription Growth
Tesla now reports annual revenue of approximately $1.3 billion from its Full Self-Driving (FSD) subscriptions, with subscriber growth up to 1.1 million in 2025 from 600,000 in 2023.
Investor Outlook
Despite a downturn in its EV segment, investors are optimistic about Tesla’s diversification into AI and energy, supported by strong cash reserves exceeding $40 billion.
