Electric vehicle maker Tesla (TSLA) is set to announce its fourth-quarter earnings results after the market closes on Wednesday, January 28. The stock has been in focus in recent weeks as the company moves ahead with its robotaxi plans and broader self-driving push. Meanwhile, TipRanks’ AI stock analysis reflects an Outperform rating on Tesla stock with a price target of $483, reflecting a 10.98% upside potential.
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Importantly, Wall Street expects Tesla to report earnings of $0.45 per share, down 38.5% from the same period last year. Also, analysts project revenues of $24.8 billion, compared with $25.7 billion in the prior-year quarter.
Recent Event Ahead of the Q4 Print
On January 23, Tesla began offering public robotaxi rides in Austin with no safety monitor inside the vehicle. This marked the first time Tesla removed all staff from the car, leaving only the rider. Previously, robotaxi rides in Austin always included a safety monitor in the front passenger seat to oversee the trip and step in if needed.
Tesla’s earnings call will be closely watched for updates on its robotaxi timeline, progress in self-driving technology, and any signs of margin improvement. As the chart shows, Tesla’s auto gross margins have been under pressure, keeping margins in focus heading into the Q4 earnings report.
Analyst’s Take Ahead of Tesla’s Q4 Earnings
Ahead of the Q4 print, Barclays analyst Dan Levy raised his price target on Tesla to $360 from $350 and kept an Equalweight rating. He said the launch of robotaxi rides without safety monitors in Austin is a meaningful step.
However, he warned that it is still early. Tesla is starting with only a small number of driver-out vehicles, and the overall robotaxi fleet in Austin remains limited. Levy added that true scale will depend on Tesla proving it can safely expand operations without safety monitors.
Options Traders See 6.04% in TSLA Stock on Q4 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about a 6.04% move in either direction in Tesla stock in reaction to Q4 results.
Is Tesla a Buy, Sell, or Hold?
According to TipRanks, TSLA stock has received a Hold consensus rating, with 10 Buys, eight Holds, and seven Sells assigned in the last three months, as indicated by the graphic below. The average TSLA price target of $398.38 per share implies 8.46% downside risk.
