Why Is Tesla (TSLA) Down 1.9% Since Last Earnings Report?

Core Insights - Tesla's recent earnings report showed a mixed performance, with earnings per share of 50 cents beating estimates but declining from 73 cents year-over-year [2]. - Total revenues of $24.9 billion missed expectations and decreased by 3% year-over-year [2]. Production and Deliveries - In Q4, Tesla produced 434,358 units, a 5% decline year-over-year, and delivered 418,227 vehicles, down 16% year-over-year [3]. - Deliveries of the Model 3/Y totaled 406,585 vehicles, a 14% decline year-over-year [3]. Automotive Revenues - Total automotive revenues were $17.7 billion, an 11% decline year-over-year, missing estimates [4]. - Automotive sales, excluding leasing and regulatory credits, totaled $16.8 billion, down 10.2% [4]. - Automotive gross profit was $2.9 billion, with a gross margin of 17.2%, up from 12.8% in the previous year [4]. Operating and Financial Metrics - Tesla's operating margin declined by 50 basis points year-over-year to 5.7%, but exceeded estimates [5]. - Energy Generation and Storage revenues rose 25% year-over-year to $3.84 billion, surpassing estimates [5]. - Cash and cash equivalents increased to $44.1 billion as of December 31, 2025, compared to $36.6 billion a year earlier [6]. Cash Flow and Capital Expenditure - Net cash from operating activities was $3.81 billion, down from $4.81 billion year-over-year [7]. - Capital expenditure totaled $2.39 billion, with free cash flow of $1.42 billion compared to $2.03 billion in the previous year [7]. Estimate Trends - There has been a downward trend in estimates, with a consensus estimate shift of -16.88% [8]. - Tesla currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [11]. Industry Comparison - Tesla operates within the Zacks Automotive - Domestic industry, where competitor Paccar reported a revenue decline of 15.1% year-over-year [12]. - Paccar's earnings per share for the last quarter were $1.06, down from $1.66 a year ago, with a forecasted earnings decline of 22.6% for the current quarter [13].