Tesla to Report Q4 Earnings: Will Robust Energy Unit Deliver Growth?

Core Insights - Tesla is expected to report its fourth-quarter 2025 results on January 28, with its Energy Generation and Storage business showing significant growth despite declining vehicle deliveries [1] Production and Deliveries - In Q3, Tesla produced 447,450 units, a 5% year-over-year decline, and delivered 497,099 cars in Q4, marking a 7.4% increase from the previous year [2] - Model 3/Y deliveries reached 481,166 vehicles, up 9% year-over-year, exceeding expectations [2] Financial Performance - Total automotive revenues for Tesla were $21.2 billion, a 6% increase year-over-year, surpassing estimates [3] - Automotive sales, excluding leasing and regulatory credits, totaled $20.4 billion, exceeding projections due to higher-than-expected deliveries [3] Energy Generation and Storage - Revenues from the Energy Generation and Storage segment reached $3.4 billion in Q3, a 44% year-over-year increase, and also beat estimates [4] - Energy storage deployments hit 12.5 GWh in Q3, with a record 14.2 GWh expected in Q4 [6][9] - The Energy Generation/Storage segment is noted for having the highest margins, with an estimated gross margin of 31.1%, improving by 5.9 percentage points year-over-year [7] Future Projections - The consensus estimate for Tesla's Q4 sales and earnings is $25.11 billion and 44 cents per share, with a slight decrease in earnings per share estimates over the past month [8] - The strong performance in the Energy Generation and Storage segment is anticipated to help offset pressures from vehicle delivery declines [9]