January 21, 2026 06:55 AM GMT Tesla Inc | North America 4Q25 Preview: Bring on the Bots We see a particularly wide dispersion in financial KPIs into the 4Q print and for 2026. We believe the stock reaction will depend on the incrementality of updates around scaling robotaxi/Cybercab, launching Unsupervised FSD, Optimus Gen 3, and AI5 on the earnings call. Important financial KPIs and where we stand vs. consensus ( Exhibit 1 ). Outside of the numbers, here's what we're tracking through earnings. | M January ...

Summary of Tesla Inc. Conference Call Company Overview - **Company**: Tesla Inc (TSLA) - **Industry**: Automotive and Shared Mobility - **Market Cap**: $1,618,293 million as of December 12, 2025 - **Current Stock Price**: $458.96 - **Price Target**: $425.00 Key Points Industry Dynamics - The automotive industry is experiencing an AI-driven inflection point, with Tesla expanding its lead in autonomous vehicle technology [1][5][15] - Tesla's robotaxi fleet is a significant focus, with plans to scale operations in Austin and San Francisco while prioritizing passenger safety [4][10] Robotaxi Development - Recent videos confirmed Tesla's robotaxi vehicles operating in Austin without a safety monitor, aligning with the company's goal to remove the monitor by year-end 2025 [3][8] - Three catalysts for scaling the robotaxi fleet include: 1. Opening the robotaxi service to the public without a safety monitor [3] 2. Improvement in safety metrics as miles driven increase without the monitor [3] 3. Start of production for the Cybercab, targeted for April 2026 [3] Fleet Expansion Projections - Tesla aims to increase its robotaxi fleet size to 1,000 vehicles on the road in 2026, up from an estimated 50-150 currently [4] - By the end of 2035, Tesla expects to have 1 million robotaxis operating across multiple cities [4] Cost Advantages - Tesla has a clear cost advantage due to vertical integration across its technology stack, including vehicle design, custom silicon, and software [10] - The Cybercab is designed specifically for robotaxi operations, which will further reduce costs and accelerate adoption [10][11] Safety and Regulatory Challenges - The ability to successfully remove the safety monitor while improving safety metrics is crucial for validating Tesla's robotaxi strategy [10] - Regulatory hurdles may limit the scaling of operations, particularly concerning the camera-only approach [10] Financial Projections - Expected EPS for fiscal years: - 2025: $1.66 - 2026: $1.98 - 2027: $2.69 [6] - Cost per mile for Tesla's robotaxi model projected to be $0.59 by 2028 [11] Risks and Considerations - Upside risks include increased FSD attach rates, successful robotaxi rollout, and new model introductions [21] - Downside risks involve execution challenges, regulatory issues, and competition from legacy OEMs and tech companies [21] Conclusion - Tesla is positioned to lead the autonomous vehicle market with its innovative robotaxi strategy and significant cost advantages, although it must navigate safety and regulatory challenges to achieve its ambitious growth targets [1][10][15]

Group 1 - The core viewpoint of the news is that the approval of China's first batch of L3 conditional autonomous driving vehicle licenses marks a significant shift towards regulatory compliance and operational deployment in the high-level autonomous driving sector [1] - Zhejiang Shibao (01057) shares rose by 7.94% to HKD 4.35, while other related stocks such as Nexperia (01316), Youjia Innovation (02431), Hesai-W (02525), and Hezhima Intelligent (02533) also experienced notable increases in their stock prices [1] - The Ministry of Industry and Information Technology officially announced the first batch of L3-level conditional autonomous driving vehicle licenses, with Chang'an Automobile and BAIC Arcfox being the first companies to receive approval for their models [1] Group 2 - Haitong International believes that the ongoing validation of Tesla's Robotaxi and the institutionalization of L3 vehicles in China are accelerating the turning point for high-level autonomous driving, which will profoundly impact vehicle valuation systems and competitive landscapes [2] - Ping An Securities emphasizes that the technology behind L3 conditional autonomous driving relies on mature and reliable driving environment perception capabilities, necessitating the use of various sensors such as cameras, millimeter-wave radar, and LiDAR for accurate environmental perception under extreme weather and complex road conditions [2]

Investment Rating - The report does not explicitly state an investment rating for the automotive industry or specific companies within it. Core Insights - The report highlights significant regulatory advancements in both China and the U.S. regarding Level 3 (L3) and Level 4 (L4) autonomous driving, indicating a shift towards commercialization and practical implementation of advanced intelligent driving technologies [1][7][10]. Summary by Sections China - The Ministry of Industry and Information Technology (MIIT) has granted conditional market access to China's first batch of L3 autonomous driving vehicles, marking a regulatory breakthrough and transitioning the sector from testing to compliant mass production [2][8]. - Approved models include the Changan Deepal SL03 and ARCFOX Alpha S, which can only activate L3 functions in designated areas, reflecting a cautious regulatory approach [2][9]. - The management framework for L3 vehicles includes "product access + operating entity + designated operating area," providing a clear template for future OEMs [2][9]. - The report anticipates that by 2026, L3 functionality could expand significantly in China, driven by accumulated pilot experience and regulatory improvements [2][9]. United States - Tesla has achieved a milestone with its Model Y Robotaxi operating fully driverless on public roads in Austin, Texas, utilizing Unsupervised FSD software, which confirms the feasibility of its autonomous technology in real-world environments [3][10]. - The U.S. is pursuing L4/Robotaxi commercialization despite an incomplete legal framework, while China is focusing on regulatory compliance for L3 vehicles, indicating parallel but distinct paths towards the same goal [3][11]. - The advancements in both countries are accelerating the transition of autonomous driving from an engineering challenge to a commercial opportunity, with significant implications for vehicle valuation and competitive dynamics [3][11].