Tesla suffers a fall in its annual vehicle sales for the first time in its history but shares are still in the green as the auto maker posts a beat on earnings. Tesla has also announced it will be axing its S and X models as it moves to increasingly produce humanoid robots.
Tesla is to axe production of two electric vehicle (EV) models as part of a shift towards robotics after the company reported its first ever decline in annual revenue.
Tesla's fourth-quarter earnings call heavily focused on the EV maker's pivot to physical AI. CEO Elon Musk announced a major investment in xAI and plans to discontinue the Model S and X.
Elon Muk's decision to sunset the Model S and X marks a definitive turning point for Tesla away from its legacy EV business and toward the future.
Tesla plans to more than double capital spending to a record high of more than $20 billion this year - but little of it will go to its traditional business of selling electric vehicles to human drivers.
On its fourth-quarter earnings call on Wednesday (Jan. 28), Tesla said its capital expenditures will exceed $20 billion in 2026, more than double prior guidance, as it accelerates investment in humanoid robotics, autonomous vehicles and artificial intelligence (AI).
Tesla, Inc. (TSLA) Q4 2025 Earnings Call Transcript
Elon Musk wants investors to think of Tesla as more than a car company—and it looks like he means business.
Tesla is currently navigating a high-stakes transition, from its cooling EV business to a tsunami of innovation arriving in 2026.
Although the revenue and EPS for Tesla (TSLA) give a sense of how its business performed in the quarter ended December 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Tesla (TSLA) came out with quarterly earnings of $0.5 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.73 per share a year ago.
Tesla, Inc. faces declining EV deliveries and net income. Q4 2025 results were also poor. TSLA stock's valuation multiples remain nearly 10x sector medians, despite poor fundamentals and intensifying competition from BYD and traditional automakers. Shorting TSLA is highly risky; the stock's price resilience is driven by strong brand loyalty and speculative innovation potential, despite weak core performance.