Tesla Q4 Earnings: Mixed Results with Energy Storage Shining Amid Automotive Decline
Tesla's fourth-quarter earnings revealed a complex picture. While adjusted EPS of 50 cents and $24.90 billion revenue sent shares up 4% after hours, the automotive segment showed continued pressure. Vehicle deliveries reached 418,227 units, with Model 3/Y accounting for 97% of production. The real story emerged in energy storage—record 14.2 GWh deployments pushed sector revenue up 25% year-over-year to $3.84 billion.
Margins told a brighter story. Gross profit climbed 20% to $5.01 billion, with automotive revenue declines (-11%) offset by energy growth and an 18% surge in services. The 20.1% gross margin marked a 386-basis-point improvement, suggesting operational efficiencies are taking hold despite pricing headwinds. Tesla's 2025 totals—1.65 million vehicles produced—demonstrate scaling consistency even in turbulent markets.