Electric Vehicle Manufacturer’s Stock Rises After Q4 Earnings Beat; Robot Production on Track for Year-End
The company’s fourth‑quarter earnings topped analysts’ expectations, sparking a rally in its shares. Revenue hit $24.90 billion, a 2.4% dip from a year ago but still outpacing the $25.11 billion forecast. Adjusted earnings per share were $0.50 versus the $0.45 projected, and operating income reached $1.41 billion against an estimate of $1.32 billion.
Gross margin outperformed expectations at 20.1%, well above the anticipated 17.1%. The stock climbed more than 3% in after‑hours trading before easing back slightly.
In its investor presentation, the company highlighted ramp‑up plans for its semi‑truck and electric cab, both slated to begin production in the first half of 2026. A next‑generation sports car is also in the works, and six new production lines will be added across the entire product lineup.
Robot production is moving forward as well. The upcoming version of its humanoid robot, slated for a Q1 2026 unveiling, is expected to start production before the end of the year with a target capacity of one million units annually.
Production lines that previously built the company’s Model X and Model S vehicles will be repurposed for the robot, a shift announced by the chief executive during the earnings call.
In the robotaxi service, the company has removed the safety driver from a limited number of vehicles in Austin, Texas, but hasn’t yet set a timeline for a full rollout. New markets—Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas—are targeted for service expansion in the first half of 2026.
Subscriptions for the full‑self‑driving software doubled in 2025, bringing the total to 1.1 million users. The company continues to pursue regulatory approvals in China and Europe.
In addition to its vehicle and robot ambitions, the company announced a $2 billion investment in a private artificial‑intelligence startup it co‑founded.
Global vehicle deliveries for the quarter were 418,227, down 15% from the 495,570 delivered in the same period a year earlier. The full‑year total of 1.64 million vehicles reflects an 8% decline compared to 2024, marking the second consecutive year of sales contraction.
Factors contributing to the sales slide include the loss of a federal electric‑vehicle tax credit, rising competition from legacy automakers, and the company’s CEO’s polarizing public profile.
Investors view the full‑self‑driving suite, the robotaxi rollout, and the robot’s commercial prospects as key catalysts for future growth. Analysts note that the company’s focus on removing safety drivers and shifting production lines could accelerate the transition to a fully autonomous fleet.
The chief executive also announced the discontinuation of a one‑time fee for the full‑self‑driving package in favor of a monthly subscription. To encourage adoption, the company removed certain driver‑assist features, such as lane‑centering and adaptive cruise control, from its vehicles.
While the CEO remains known for ambitious timelines, he expects the robot’s commercial sales to begin next year, signalling a continued push into new technology frontiers.
