Tesla reported fourth-quarter 2025 revenue, adjusted EPS and gross profit that each exceeded Wall Street consensus estimates. Total revenue rose 2.5% year-over-year to $24.9 billion, while adjusted EPS of $0.50 per share topped forecasts by five cents. Gross profit climbed 6% sequentially to $5.4 billion, translating into a 21.7% gross margin despite ongoing industry pricing pressure and supply-chain constraints. Management confirmed plans to discontinue Model S and Model X production in mid-2026, repurposing the Fremont factory lines to build Optimus humanoid robots and Cybercab robotaxis. Capital expenditures are slated to exceed $20 billion in 2026—more than double the $8.5 billion spent in 2025—to fund new robotics facilities, AI compute infrastructure, additional battery-cell production and Cybercab ramp-up. Elon Musk reiterated that mass production of Optimus is expected by late 2026, targeting a long-term annual capacity of one million units. Despite lower automotive volume, Tesla ended Q4 with a cash balance of $44.1 billion, up 173% year-over-year, and reported automotive gross margins (excluding regulatory credits) of 17.9%, up from 15.4% in the prior quarter. The strong liquidity position and resilient margins provide a multi-quarter runway to fund elevated capex plans and support continued R&D spending on Full Self-Driving subscriptions, which now boast over 1.1 million paid customers globally. Tesla’s energy generation and storage business achieved standout results, with Q4 segment revenue up 25% year-over-year and full-year growth of 27%. Strong demand for Megapack systems and residential battery packs helped offset an 8.6% decline in vehicle deliveries. The segment generated $3.1 billion in revenue during Q4 and contributed materially to the company’s free cash flow, which totaled $1.4 billion for the quarter.