Tesla initiated its first commercial robotaxi service in Austin, Texas, on June 22, 2025, deploying a fleet of 50 Cybercabs equipped with Full Self-Driving hardware. Since launch, the service has expanded to cover key corridors within Travis County, completing over 100,000 revenue-generating rides through December 2025. Tesla has registered 1.1 million active Full Self-Driving subscriptions, and management projects that production of the Gen 2 Cybercab for broader rollout will begin in mid-2026, targeting service expansion to the Bay Area and Southern California by Q4. While robotaxi revenue is estimated at approximately $1 billion in 2026—representing only about 1% of projected total sales—investors view the program as a critical long-term growth catalyst, with scalability hinging on regulatory approvals and unit economics improvements through optimized routing and software updates.

Tesla’s energy generation and storage segment set a new deployment record in 2025, installing 5.2 GWh of battery systems worldwide, up 42% year-over-year. Megapack backlog at the end of Q4 exceeded 3 GWh, representing over $3 billion of contracted future revenue. The business achieved a gross margin of 29.5% in Q4 2025, driven by improved module yields at Gigafactory Nevada and cost reductions in inverter procurement. Management forecasts energy deployments to grow at a 35% compound annual rate through 2026, supported by utility-scale project awards in California’s transmission upgrade program and an expanded solar-plus-storage offering for commercial customers. Analysts note that this segment’s margin profile now rivals Tesla’s automotive operations, prompting some to value the company as two distinct businesses.

Tesla delivered approximately 1.64 million vehicles in 2025, an 8% decline from the 1.79 million units shipped in 2024, with Q4 deliveries down roughly 15% year-over-year. Full-year revenue fell to $94.8 billion, while net income contracted to $3.8 billion, reflecting pressure from price adjustments in Europe and China. Adjusted EPS for Q4 2025 came in at $0.50, slightly above consensus estimates but still 17% below the prior year. Capital expenditures topped $12 billion for the year, driven by Gigafactory expansions in Texas and Berlin and investment in AI training infrastructure. For 2026, Tesla has guided capex above $20 billion, prioritizing Robotaxi tooling, Optimus robot development, and doubling AI compute capacity at its Texas campus. Wall Street’s 12-month price targets range from bearish forecasts of a further downside in delivery trends to bullish scenarios valuing the company’s AI and energy assets as they reach scale.