Tesla (TSLA) reported fourth-quarter 2025 earnings that topped estimates from Wall Street, fueling its stock higher after trading closed. TSLA climbed 3% after the markets closed, after the earnings report blew past expectations and Elon Musk delivered big promises during the earnings call. The CEO announced ambitious plans for $20 billion in capital expenditures and a shift towards autonomous vehicles, including the end of Model S and X production to focus on robot manufacturing.
For the quarter, Tesla reported revenue of $24.90 billion vs. $25.11 billion estimated, a 2.4% drop from a year ago. Tesla posted adjusted earnings per share (EPS) of $0.50 vs $0.45 expected, with operating income of $1.41 billion vs. $1.32 billion estimated. Tesla’s Q4 gross margin came in better than expected at 20.1% vs. 17.1% estimated.
Additionally, the automaker unveiled updates for its new line of vehicles and the Optimus robot. “Preparations continue in North America for the production ramps of Tesla Semi and Cybercab, both commencing 1H26, and production of the next-generation Roadster,” the company said in its shareholder deck, adding that it will ramp up six new production lines across all its products. Tesla also said it plans to unveil Optimus V3 in Q1 of this year, with start of production planned “before the end of 2026 and eventual planned capacity of 1 million robots per year.”
Furthermore, Tesla (TSLA) touched on autonomous and full-self-driving (FSD) software, a project that has often attracted stock bulls when discussed. Indeed, the company stated that subscriptions doubled in 2025, and it is still “pursuing regulatory approval in China and Europe. Tesla reported at the end of 2025 that it had 1.1 million FSD subscribers. Musk also announced the one-time fee for FSD would be going away instead of a subscription plan, which currently costs $99/month. While the service has seen controversy in recent months due to federal investigations, the stock remains a valuable asset in the motor vehicle sector.
At press time, TSLA is trading near the top of its 52-week range and above its 200-day simple moving average.
