Sou Hu Cai Jing·2026-01-29 01:01Core Viewpoint - Tesla reported better-than-expected Q4 earnings, with record energy deployment, but faced a 3% decline in annual revenue for the first time in its history, alongside a significant 61% drop in Q4 net profit [1][5][10]. Financial Performance - Tesla's total revenue for Q4 was approximately $24.9 billion, slightly above Wall Street's expectation of $24.79 billion, despite a year-over-year decline of about 3% [2][5]. - The automotive business, which is Tesla's core revenue source, saw a significant year-over-year decline of 11%, dropping from approximately $19.8 billion to $17.7 billion [5]. - Adjusted earnings per share for Q4 were about $0.50, exceeding analysts' expectations of $0.45 [2]. Market Response - Despite the disappointing annual revenue and Q4 profit, Tesla's stock price rose in after-hours trading, reflecting investor confidence in CEO Elon Musk's vision for a "Tesla super technology empire" [1][2]. - The stock has seen a significant increase of 50% since the second half of 2025, indicating strong market sentiment despite ongoing performance challenges [1]. Strategic Investments - Tesla announced a $2 billion investment in xAI, a competitor to OpenAI, aiming to enhance its capabilities in AI applications [1][15]. - The investment aligns with Tesla's broader strategy to integrate AI into its products and services, as outlined in its Master Plan Part IV [16]. Future Growth Initiatives - Tesla is focusing on advancements in AI, autonomous driving, Robotaxi services, and the Optimus humanoid robot, which are seen as key drivers for future growth [12][14]. - The company plans to convert its Fremont factory production line to mass-produce the Optimus robot, with a target to start production by the end of 2026 [14]. Competitive Landscape - Tesla faces increasing competition, particularly from BYD in the Chinese market, which has impacted its vehicle sales in recent quarters [2][10]. - The company reported a 16% decline in electric vehicle deliveries for Q4 and an 8.6% drop in annual deliveries [8]. Energy and Storage Business - Tesla's energy generation and storage business reported revenue of approximately $3.84 billion, reflecting a year-over-year growth of 25%, which partially offsets the decline in automotive revenue [12][14]. - The company emphasized the importance of its energy business as a "hard support" against the downturn in automotive sales [5]. SpaceX and Broader Ecosystem - Tesla's long-term growth narrative is closely tied to SpaceX, with investors viewing Tesla stock as a proxy for exposure to SpaceX's potential IPO and its ambitious projects [2][18]. - SpaceX's plans for solar energy production and AI capabilities are expected to synergize with Tesla's goals, enhancing the overall valuation narrative for both companies [19][21].