Tesla Q4 EPS Tops Estimates; Revenue Slips 3% and Deliveries Drop 16%
Tesla’s Q4 adjusted EPS of $0.50 topped estimates but fell 32% year-over-year as revenue declined 3% to $24.9 billion and deliveries slid 16% to 418,227 vehicles. Automotive gross margin rose to 17.2% yet total vehicle production missed forecasts and consensus estimates have slumped nearly 17% since earnings.
1. Q4 Earnings Performance
Tesla reported adjusted EPS of $0.50 in Q4 2025, exceeding analyst projections yet down from $0.73 a year earlier. Total revenue stood at $24.9 billion, marking a 3% year-over-year decrease and missing forecasted $25.14 billion.
2. Production and Delivery Shortfall
Vehicle production totaled 434,358 units, a 5% year-over-year decline that fell short of the 462,212-unit estimate. Deliveries reached 418,227 vehicles, down 16% year-over-year and below the expected 448,384 units, driven by weaker Model 3/Y volumes.
3. Strong Margin and Cash Reserves
Automotive gross margin improved to 17.2% from 12.8% in the prior year, while operating margin eased 50 basis points to 5.7%. The company ended the quarter with $44.1 billion in cash, equivalents and investments against $6.74 billion in net long-term debt.
4. Estimate Revisions and Outlook
Consensus EPS and revenue estimates have slid by 16.9% since the earnings release, reflecting lowered growth expectations. Tesla holds a VGM Score of F and a sell ranking, suggesting below-average returns over the coming months.