Tesla (NASDAQ:TSLA) Announces Quarterly Earnings Results

Tesla (NASDAQ:TSLA) announced its earnings results on Wednesday. The electric vehicle producer reported $0.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.45 by $0.05, FiscalAI reports. Tesla had a return on equity of 6.61% and a net margin of 5.51%.The firm had revenue of $24.90 billion for the quarter, compared to analyst estimates of $24.75 billion. During the same quarter last year, the firm posted $0.73 EPS. The business’s revenue was down 3.1% on a year-over-year basis.

Here are the key takeaways from Tesla’s conference call:

• Tesla reported rapid progress on autonomy and Robotaxi rollout — unsupervised FSD rides are live in Austin, the fleet exceeds ~500 paid-ride vehicles, and management expects fully autonomous service in dozens of U.S. cities by year-end (regulatory approval permitting), supporting a large new recurring-revenue opportunity.
• The company is shifting FSD to a subscription-only model after reaching nearly 1.1 million paid customers, which Tesla says will reduce upfront FSD revenue and will negatively impact automotive margins in the near term.
• Tesla plans to more than double CapEx to >$20 billion in 2026 to fund six new factories (Optimus, Cybercab, Semi, refinery, LFP, Mega factory), AI compute, and factory expansions — a deliberate growth push that will materially increase near-term cash outlays and pressure free cash flow.
• Energy continued strong momentum with record gross profit and $12.8 billion revenue (26.6% YoY); Tesla plans major scale-ups (Megapack 3, Megablock and a 100 GW/year solar cell ambition), indicating a potentially underestimated long-term growth vector.
• Tesla will end Model S and X production next quarter and convert the Fremont SX lines into an Optimus factory targeting 1 million units/year, but executives cautioned Optimus will follow a stretched S-curve ramp and not be material immediately, making this a high-opportunity yet execution-risk strategic pivot.

Tesla Stock Performance

NASDAQ:TSLA opened at $431.46 on Thursday. The company has a market cap of $1.43 trillion, a P/E ratio of 287.64, a P/E/G ratio of 7.32 and a beta of 1.83. Tesla has a fifty-two week low of $214.25 and a fifty-two week high of $498.83. The company has a quick ratio of 1.67, a current ratio of 2.07 and a debt-to-equity ratio of 0.07. The firm’s 50 day moving average is $446.48 and its two-hundred day moving average is $406.64.

Analysts Set New Price Targets

Several analysts have recently weighed in on the stock. Cantor Fitzgerald set a $510.00 price target on shares of Tesla and gave the company an “overweight” rating in a research note on Thursday, October 23rd. TD Cowen reaffirmed a “buy” rating on shares of Tesla in a report on Monday, November 17th. Piper Sandler reissued an “overweight” rating and set a $500.00 price objective on shares of Tesla in a report on Thursday, January 8th. Royal Bank Of Canada reissued a “buy” rating and issued a $500.00 target price on shares of Tesla in a report on Friday, January 2nd. Finally, China Renaissance upped their target price on shares of Tesla from $349.00 to $380.00 and gave the company a “hold” rating in a report on Friday, October 24th. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and eight have assigned a Sell rating to the company. According to data from MarketBeat.com, Tesla currently has a consensus rating of “Hold” and a consensus target price of $410.77.

Tesla News Summary

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Q4 beat on EPS and revenue — Tesla reported $0.50 GAAP EPS (above consensus) and $24.9B in revenue, topping Street expectations; the upside drove immediate investor relief despite weaker unit trends. TSLA Earnings: Tesla Beats Wall Street Estimates Even as Annual Sales Decline for the First Time
• Positive Sentiment: Robotaxi / AI narrative remains a catalyst — Analysts and commentators emphasized Tesla’s pivot to FSD, Optimus robots and robotaxis as the long-term growth story that can justify a higher multiple. That forward-looking narrative buoyed sentiment despite near-term weakness. TSLA EPS Review: A Tsunami of New Product Launches Awaits
• Positive Sentiment: Margins showed some stabilization — Several reports noted improved margins or better-than-feared profit metrics in Q4, helping investors look past sliding deliveries. Tesla revenue beats estimates despite weaker vehicle deliveries
• Neutral Sentiment: Tesla to invest $2B in Elon Musk’s xAI — The company disclosed a roughly $2B preferred-share investment in xAI; it supports the AI story but raises questions about capital allocation given shrinking auto profits. Tesla to invest $2 billion in xAI, Elon Musk’s OpenAI competitor
• Neutral Sentiment: Model S and Model X to be discontinued — Musk said Tesla will end S/X production next quarter to repurpose lines for robotics; strategic for the AI/robotics pivot but could compress vehicle revenue/volume near term. Elon Musk says Tesla ending Models S and X production, converting Fremont factory lines to make Optimus robots
• Negative Sentiment: First-ever annual revenue decline and profit slump — Tesla reported full-year revenue down ~3% and profit plunged (reports cite a ~46% drop), underlining weakening vehicle demand and policy headwinds that pressure fundamentals. Tesla suffers first annual drop in revenue in 2025
• Negative Sentiment: Crypto loss, competition and brand erosion — Tesla recorded a Bitcoin impairment (~$239M reported) and faces stronger competition (BYD gains, collapsing European sales) plus a falling brand valuation — all risks to near-term sales and sentiment. Tesla Reports $239 Million Loss on Bitcoin Holdings in Q4 2025

Insider Activity at Tesla

In other Tesla news, Director Kimbal Musk sold 56,820 shares of the company’s stock in a transaction that occurred on Tuesday, December 9th. The stock was sold at an average price of $450.66, for a total value of $25,606,501.20. Following the completion of the transaction, the director owned 1,391,615 shares in the company, valued at $627,145,215.90. This represents a 3.92% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Vaibhav Taneja sold 2,637 shares of Tesla stock in a transaction on Monday, December 8th. The stock was sold at an average price of $443.93, for a total transaction of $1,170,643.41. Following the completion of the sale, the chief financial officer owned 13,757 shares of the company’s stock, valued at approximately $6,107,145.01. This trade represents a 16.09% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 119,457 shares of company stock worth $53,501,145. 19.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Tesla

Several large investors have recently made changes to their positions in TSLA. Chapman Financial Group LLC acquired a new position in shares of Tesla during the 2nd quarter valued at $26,000. Turning Point Benefit Group Inc. bought a new position in Tesla during the third quarter valued at about $30,000. Texas Capital Bancshares Inc TX acquired a new position in Tesla during the third quarter worth about $31,000. Wealth Watch Advisors INC acquired a new stake in Tesla in the 3rd quarter valued at about $129,000. Finally, SWAN Capital LLC raised its holdings in shares of Tesla by 9.9% in the 3rd quarter. SWAN Capital LLC now owns 378 shares of the electric vehicle producer’s stock worth $168,000 after purchasing an additional 34 shares in the last quarter. Institutional investors and hedge funds own 66.20% of the company’s stock.

Tesla Company Profile

Tesla, Inc (NASDAQ: TSLA) is an American company that designs, manufactures and sells electric vehicles, energy generation and energy storage products. Founded in 2003 by Martin Eberhard and Marc Tarpenning, Tesla grew into a vertically integrated mobility and clean?energy company with Elon Musk serving as its chief executive officer. The company’s stated mission is to accelerate the world’s transition to sustainable energy, reflected in its combined focus on electric drivetrains, battery technology, renewable energy products and software.

Tesla’s automotive business includes a lineup of battery?electric vehicles and related services.