Core Viewpoint - Anticipation is building for Q4 earnings reports from General Motors (GM) and Tesla (TSLA), with concerns over a decline in EV sales due to the expiration of the $7,500 federal tax credit [1][2] General Motors (GM) - GM sold 25,219 EVs in Q4 2025, down from 43,982 in Q4 2024, but achieved a record total of 169,887 EVs sold in 2025, marking a 48% increase from 2024 [3] - GM's total vehicle sales increased by 5.5% in 2025 to 2.8 million [3] - Q4 sales are expected to be $44.68 billion, a 6% decrease from $47.71 billion in the prior year, but Q4 EPS is projected to rise 15% to $2.21 from $1.92 [5] - The Zacks ESP indicates GM could exceed earnings expectations, with the most accurate estimate for Q4 EPS at $2.37, 7% above the Zacks Consensus [6][7] - Full-year EPS for FY25 is expected to dip 2% to $10.33, but FY26 EPS is forecasted to rise 16% to $12.00 [12][14] - GM stock has a Zacks Rank 1 (Strong Buy) and is considered undervalued at 6X forward earnings [15] Tesla (TSLA) - Tesla sold 418,227 EVs in Q4 2025, down from 495,570 in Q4 2024, with total vehicle sales dropping 8% to 1.63 million from 1.78 million [4] - Q4 sales are expected to fall 2% to $25.11 billion compared to $25.71 billion in the prior year, with EPS projected to drop 40% to $0.44 from $0.73 [10] - The Zacks ESP suggests Tesla could also surpass earnings expectations, with the most accurate estimate for Q4 EPS at $0.46, 3% above the Zacks Consensus [10][11] - FY25 EPS estimates have fallen 33% to $1.61, while FY26 EPS is projected to stabilize and rise 37% to $2.20 [12] - Tesla shares have a Zacks Rank 4 (Sell) due to a concerning EPS revision trend and a high P/E valuation of 200X [15] Investment Outlook - Despite Tesla's advancements in energy and autonomous vehicle production, GM is viewed as the safer investment option at this time, with both companies expected to beat Q4 earnings expectations [16]