"Tesla ( NASDAQ: TSLA) reports Q4 2025 earnings after the bell today. Shares are down 5% in the past month heading into the print, and prediction markets are pricing just a 40% chance of a beat. After missing Q3 estimates by 11%, this report will test whether the stock's valuation can hold without near-term execution. Tesla missed Q3 estimates badly, reporting $0.39 per share against expectations of $0.44."
"I'm watching gross margins first. Gross margins returned to 18% last quarter, and Wall Street expects margins to land at 17.35% in Q4. The energy business is expected to be the highlight. Storage and generation have shown consistent growth while automotive stumbles. If Tesla can show meaningful revenue contribution from this segment, it gives the bull case something concrete beyond robotaxi promises."
Tesla reports Q4 2025 earnings with shares down 5% over the past month and markets pricing a roughly 40% chance of an earnings beat. Margin compression has driven EPS estimates down to $1.64 for 2025 from $2.42 in 2024, and the stock trades around 196x forward earnings. Delivery volumes declined 15.6% in Q4 year-over-year, European registrations fell 20% in December, and brand value declined $15.4 billion in 2025. Wall Street expects gross margins near 17.35% in Q4. Energy storage and generation show consistent growth, while automotive weakens. FSD monetization and potential robotaxi revenue remain key valuation drivers for 2026–2027.
Read at 24/7 Wall St.
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