Key Stats for Tesla Stock
- Pre-Market Price change for Tesla stock: 2.5%
- $TSLA Share Price as of Jan. 28: $431
- 52-Week High: $499
- $TSLA Stock Price Target: $411
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What Happened?
Tesla (TSLA) stock is up 2.5% in pre-market trading despite reporting its first annual revenue decline on record.
The electric vehicle maker posted fourth-quarter earnings of $0.50 per share, beating analyst estimates of $0.45, while revenue came in at $24.90 billion versus expectations of $24.78 billion.
The bigger story came during the earnings call when CEO Elon Musk announced Tesla would discontinue production of the Model S and Model X vehicles next quarter.
The company plans to convert those manufacturing lines at its Fremont, California, factory into production space for Optimus, Tesla’s humanoid robot.
“We’re really moving into a future that is based on autonomy,” Musk said, signaling a major strategic shift for the company.
- Full-year revenue dropped 3% to $94.8 billion from $97.7 billion in 2024, marking Tesla’s first annual sales decline.
- Vehicle deliveries fell 8.6% for the year, reflecting sluggish demand amid increased competition from rivals such as BYD in China and consumer backlash over Musk’s political activities.
- Tesla stock has faced headwinds throughout 2025 as the company’s core automotive business struggled with an aging vehicle lineup and intensifying competition.
- The Model S and X, first launched in 2012 and 2015, respectively, represented Tesla’s premium offerings but had seen declining sales.
CFO Vaibhav Taneja told investors to expect around $20 billion in capital expenditures this year as Tesla invests heavily in new factories, Optimus production, Robotaxi infrastructure, and AI computing resources. This represents more than double the company’s 2025 capex spending.
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What the Market Is Telling Us About Tesla Stock
The modest after-hours rally in Tesla stock suggests investors are cautiously optimistic about the company’s pivot toward robotics and autonomous vehicles, even as traditional auto sales struggle.
The earnings beat, combined with management’s bold vision for the future, appears to have outweighed concerns about the first-ever annual revenue decline.
However, Tesla’s ambitious plans come with significant execution risk.
- The company is essentially betting its future on two unproven technologies—autonomous ride-hailing and humanoid robots—while winding down production of established premium vehicles that still generate revenue.
- Tesla said it plans to begin producing the Cybercab, a two-seat driverless vehicle with no steering wheel or pedals, starting in April.
- The company is also expanding its Robotaxi service to seven additional U.S. cities in the first half of this year, including Dallas, Houston, Phoenix, and Miami.
For Optimus, Tesla plans to unveil the third generation this quarter, calling it “our first design meant for mass production.”
Musk stated the company aims to eventually produce 1 million Optimus units annually from the converted Fremont production lines.
Investors should note that while Tesla’s Energy business grew 25% to $3.84 billion and Services revenue rose 18% to $3.37 billion, the automotive segment—still Tesla’s largest revenue source—fell 11% to $17.7 billion in the quarter.
The company also disclosed a $2 billion investment in xAI, Musk’s artificial intelligence startup, which Tesla says will help it deploy AI products at scale.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
