KEY TAKEAWAYS
- Tesla beat profit expectations, but Q4 revenue fell 3% to $24.9 billion, showing continued pressure on the car business.
- Lower deliveries and weaker regulatory credit sales continued to drag on revenue and margins.
- Energy storage and services growth helped offset part of the automotive decline.
Tesla's latest earnings tell a tale of two parts. On one side is the company Tesla is today: selling fewer cars, earning less from each one, and watching a decade-long growth streak break. On the other is the company Elon Musk keeps asking investors to believe in: one built around autonomy, robots, energy storage, and artificial intelligence, funded by billions in new spending.
The Q4 2025 results sit directly at the intersection of these two stories. Although the numbers beat analyst expectations, the business underneath those numbers is pulling apart. Its present is under pressure. Its future is becoming increasingly expensive.
That tension shows up first, and most clearly, in Tesla’s core business.
MORE INSIGHTS ON THIS TOPIC:
- Tesla's earnings stumbles in Q1 2025, promises a cheaper future
- China’s BYD surpasses Tesla in EV sales and revenue amid intensifying global competition
- Tesla’s Q3 Earnings Report Shows a Company in Transition
