Tesla Faces Headwinds Ahead of Q4 2025 Earnings Report
Tesla's stock, trading at a staggering P/E ratio of 293, faces skepticism even among bullish investors as the company grapples with declining EV deliveries and revenue. The 9% drop in 2025 deliveries and a similar decline in automotive revenue through the first nine months underscore growing challenges in a competitive market.
The elimination of federal EV tax credits under President Trump's legislation has further pressured Tesla's Core business. Price cuts, intensified competition, and CEO Elon Musk's polarizing political activities have compounded these headwinds. Q3 2025 results showed automotive revenue accounting for 75% of total revenue, highlighting the segment's critical role.
Wall Street anticipates Q4 earnings of $0.45 per share, a 38.5% year-over-year decline, with analysts maintaining a Hold rating. The upcoming January 28 earnings report will be a crucial test for Tesla as it navigates these challenges and plans for robotaxi expansion in 2026.