Tesla (NASDAQ: TSLA) delivered a mixed Q4 report, meeting revenue expectations and beating EPS estimates by a wide margin. However, demand continued to weaken in its core automotive segment as brand erosion persisted and China’s BYD continued to take market share. Quarterly deliveries declined 16% year over year, while full-year automotive revenue fell 10%. Margins improved during the quarter, supporting overall gross margin expansion. Energy Generation and Storage, along with Services, continued to post solid growth, though these segments still represent a minority of total revenue and remain insufficient to offset automotive weakness.
Details around future revenue drivers that continue to underpin Tesla’s valuation were limited. Management reiterated plans to unveil the mass-production version of Optimus before year-end and again referenced a long-term production target of 1 million units. However, CEO Elon Musk avoided questions regarding current Optimus deployment and usage within Tesla. Robotaxi and CyberCab also remained opaque, with strategy and timelines still unclear. No data was provided on paid rides in the limited markets where robotaxi services are reportedly active, raising further questions around commercialization. Musk also floated potential expansion into solar panel manufacturing and AI chip and memory production, but offered little in the way of concrete details.
For more details, key highlights, and commentary, check out the high-level earnings summary.
