Tesla’s (TSLA) stock jumped 4% in after hours trading as the electric vehicle maker reported fourth-quarter 2025 financial results that beat Wall Street estimates.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
The company run by CEO Elon Musk announced earnings per share (EPS) of $0.50, which was above the $0.45 estimated among analysts. Revenue in the quarter totaled $24.90 billion, which beat the $24.79 billion forecast on Wall Street.
Despite the top and bottom line beats, Tesla’s revenue for all of 2025 fell 3%, the first time on record that the company has recorded an annual sales decline. Investors don’t seem concerned about the revenue drop as they bid up the stock immediately after the company’s financial results were made public.
Tesla’s income statement. Source: The Fly
Tesla’s Electric Vehicle Sales
Tesla has struggled with slowing electric vehicle sales in recent quarters as the company faces increased competition and a backlash against Musk’s politics. The company said that revenue in the fourth quarter fell 3%, with sales in the auto segment declining 11%. Full-year revenue dropped to $94.8 billion from $97.7 billion in 2024, also a 3% decrease.
Earlier in January, Tesla reported a 16% plunge in its electric vehicle deliveries for Q4 2025 and an 8.6% decline for all of last year. Deliveries are the closest approximation of sales for Tesla. The company’s net income in the quarter plunged to $840 million, or $0.24 per share, from $2.1 billion, or $0.60 a share, in the year earlier period.
Tesla is trying to diversify its business away from electric vehicles and towards self-driving cars and humanoid robots, both of which are still in the development stage.
Is TSLA Stock a Buy?
Tesla’s stock has a consensus Hold rating among 24 Wall Street analysts. That rating is based on 10 Buy, eight Hold, and six Sell recommendations issued in the last three months. The average TSLA price target of $406.87 implies 6.09% downside from current levels. These ratings could change after the company’s financial results.
