Q4 2025 EARNINGS UPDATE | JANUARY 29, 2026 FOURTH QUARTER 2025 EARNINGS CALL | 2 CES highlights FOURTH QUARTER 2025 EARNINGS CALL | 1 Forward-looking statements This presentation contains statements that the Company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company's future financial position, business strategy, growth ...

3QFY26 Investor Presentation Forward-looking statements This presentation and the accompanying oral remarks contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward- looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of ...

Core Insights - Tesla is ending production of the Model S and X, marking a significant shift in its strategy towards future products and technologies [1][7] Financial Performance - The Model S and X account for less than 5% of Tesla's overall revenue, indicating a decline in their financial significance as the EV market becomes more competitive [2] Manufacturing Strategy - Tesla plans to retool its Fremont factory for the production of the Optimus humanoid robot, aiming for a potential output of one million units per year [3][7] Strategic Focus - The decision to phase out the Model S and X reflects Tesla's pivot towards autonomy and robotaxis, moving away from traditional EV offerings [3][6][7] Future Outlook - Investors should monitor Tesla's progress in three key areas: Tesla Energy growth, robotaxi expansion, and Optimus production, as these will significantly influence stock performance [6]

In a notable product announcement, Musk said Tesla expects to wind down Model S and Model X production next quarter and “basically stop production” of the vehicles. He said Tesla will continue to support owners, but will convert the Model S/X production space at the Fremont factory into an Optimus robot factory. Musk said the long-term goal is to produce 1 million Optimus units per year in that space.Musk said Tesla has updated its mission to “amazing abundance,” framing the change as an optimistic view of ...

Core Viewpoint - Tesla will discontinue the Model S and X in the next quarter, marking the end of its premium SUV and sedan models as the company shifts focus towards autonomy [1] Group 1: Company Strategy - The decision to end the Model S and X programs is described as an "honorable discharge," indicating a strategic pivot for Tesla towards future technologies [1] - CEO Elon Musk emphasized the importance of moving into a future based on autonomy, suggesting a significant shift in the company's product focus [1]

Core Insights - Tesla is discontinuing production of the Model S sedan and Model X SUV, with final versions to be produced next quarter [1] - The company will repurpose the factory space in Fremont, California, to manufacture Optimus robots instead [1] - CEO Elon Musk emphasized the shift towards autonomy as a reason for ending the Model S and X programs, encouraging potential buyers to place orders soon [1] Company Overview - The Model S was launched in 2012 and is credited with making electric vehicles widely appealing [1] - The Model X was Tesla's second major electric vehicle program [1] - Sales of both the Model S and Model X have stagnated in recent years, despite updates to their interiors and exteriors [1]

Tesla didn’t post the kind of quarter that usually lifts a stock. Profit fell sharply, deliveries declined, and margins stayed under pressure. But after-hours trading told a different story — up 4% initially — one that has less to do with cars and more to do with the future investors still want to believe in. By the numbers, the quarter was bruising. Net income dropped 61% from a year earlier, automotive revenue slid 11%, and total deliveries fell by double digits. Costs rose, operating leverage worked i ...

Core Insights - The company has demonstrated strong operational performance in Q3, with a record backlog of $85 billion, indicating confidence in future growth [4][15] - Revenue increased by 6% year-to-date, with a full-year guidance of 5% growth, driven by disciplined business pursuits and cost efficiencies [3][5] - The company is increasing its EPS guidance by $0.75, reflecting solid year-to-date results and a focus on productivity and efficiency initiatives [2] Financial Performance - Free cash flow for the quarter was $730 million, aligning with expectations and providing flexibility for capital deployment [2][21] - Segment operating margins improved to 11.5%, the highest in over two years, driven by solid sales volume and operational performance [3][19] - Earnings per share increased by 13% to $7, supported by strong segment performance and favorable tax rates [20] Business Segments - The Aeronautics segment is expected to achieve sales of approximately $12 billion, reflecting an 11% year-over-year increase, with an operating margin rate guidance of around 10% [22] - Defense Systems (DS) is projected to have a sales range in the high $8 billion, with a mid-single-digit growth rate, while Mission Systems (MS) is expected to see margins improve to high 13% [22][23] - The Space segment anticipates a mid-single-digit decline due to program wind-downs, but margin rates are expected to improve to the mid- to high 10% range [23] Market Demand and Strategy - There is robust international demand for defense capabilities, particularly in Europe, with NATO members increasing defense spending [10][8] - The company expects international sales to grow faster than domestic sales over the next several years, with a book-to-bill ratio of almost two times in Q3 [9][10] - The company is focused on delivering technical innovations, such as the Glide Phase Interceptor program, to address evolving defense needs [10][11] Future Outlook - The company projects sales growth between 3% and 4% for 2025, with expectations for continued margin expansion driven by favorable macro trends and program performance [11][28] - Free cash flow is expected to grow by over 20% year-over-year in 2025, with plans to return approximately 100% of free cash flow to shareholders [12][28] - The company remains confident in its strategy to create value for customers and shareholders, with a focus on profitable growth and capital deployment [28][29]

Group 1: Meta and Threads - Meta's stock increased approximately 5% as management reported early success in monetizing Threads, indicating a positive market reaction driven by optionality rather than immediate revenue [1] - Threads is being developed as an additional scalable advertising platform that leverages Meta's existing data and targeting capabilities, following a strategy of building user engagement before efficient monetization [1] Group 2: Tesla and Robotics - Tesla's CEO Elon Musk emphasized that robotics is a long-term strategic focus rather than a short-term revenue generator, prioritizing autonomy and real-world applications over aggressive commercialization timelines [2] - The narrative surrounding robotics is framed as an efficiency and productivity enhancement story, with the understanding that progress will be inconsistent, benefiting platforms that can effectively integrate hardware, software, and data at scale [3] Group 3: Cryptocurrency Market - Bitcoin is currently in a downtrend, characterized by lower highs and weak follow-through, indicating a lack of sustained risk appetite in the market [4] - Despite the ongoing downtrend, the long-term outlook for cryptocurrency remains intact, highlighting the necessity for patience until liquidity improves or macroeconomic pressures lessen [6]

Core Insights - Ark Invest, led by Cathie Wood, is focusing on innovation themes such as autonomy, gene editing, and advanced air mobility, adding companies like Archer Aviation, Joby Aviation, and Deere and Company to its portfolio [1] - Wood sold approximately 58,000 shares of Palantir Technologies, which represents less than 15% of her total stake, indicating profit-taking and rebalancing rather than a negative outlook on the company [2] - Analysts, including Dan Ives from Wedbush and Tyler Radke from Citigroup, have positive projections for Palantir, with Ives suggesting it could become a trillion-dollar company and Radke upgrading the stock to "Buy" with a price target increase from $210 to $235 [2][3] Company Performance - Palantir Technologies has diversified its revenue sources, with nearly half coming from the commercial segment, reducing its reliance on government contracts [4] - The stock has experienced a significant gain of about 159% over the past year, although it had a remarkable 340% gain in 2024, making it the best performer in the S&P 500 [5] - Currently, Palantir's stock is trading at a forward price-to-earnings (P/E) ratio of 225, which is considerably higher than its five-year average, suggesting that much of the positive outlook is already priced in [6]