Tesla Q4 Earnings Beat Estimates, Revenues Decline Y/Y

Core Insights - Tesla reported fourth-quarter 2025 earnings per share of 50 cents, exceeding the Zacks Consensus Estimate of 45 cents but down from 73 cents year-over-year. Total revenues were $24.9 billion, missing the estimate of $25.14 billion and declining 3% year-over-year [1][9]. Production and Deliveries - Tesla's fourth-quarter production totaled 434,358 units, a 5% decline year-over-year, and fell short of the estimate of 462,212 units. Vehicle deliveries were 418,227, down 16% year-over-year and below the estimate of 448,384 units. Model 3/Y deliveries were 406,585, a 14% decline year-over-year, missing the expectation of 430,871 units [2]. Automotive Revenues - Total automotive revenues reached $17.7 billion, an 11% decline year-over-year, missing the estimate of $19.3 billion. This included $542 million from the sale of regulatory credits, down 21.7% year-over-year. Excluding leasing and regulatory credits, automotive sales totaled $16.8 billion, a 10.2% decline, also missing the projection of $18.5 billion. Automotive gross profit was $2.9 billion, with a gross margin of 17.2%, up from 12.8% in Q4 2024 [3]. Operating and Energy Revenues - Tesla's operating margin decreased by 50 basis points year-over-year to 5.7%, surpassing the estimate of 5.3%. Energy Generation and Storage revenues were $3.84 billion, a 25% increase year-over-year, exceeding the estimate of $3.4 billion. Energy storage deployments totaled 14.2 GWh. Services and Other revenues amounted to $3.4 billion, an 18% increase year-over-year, matching the estimate [4]. Financial Position - As of December 31, 2025, Tesla had cash, cash equivalents, and investments totaling $44.1 billion, up from $36.6 billion a year earlier. Long-term debt and finance leases net of the current portion were $6.74 billion, an increase from $5.75 billion as of December 31, 2024 [5]. Cash Flow - Net cash provided by operating activities was $3.81 billion in Q4 2025, down from $4.81 billion in the same period last year. Capital expenditure was $2.39 billion, with free cash flow generated at $1.42 billion, compared to $2.03 billion in Q4 2024 [6].