TSLA Q4 2025 Earnings

Call Details

• Call Title: Tesla, Inc. Q4 2025 Earnings Call
• Date: January 28, 2026 at 10:30 PM UTC
• Management Team:
  • Travis Axelrod (Head of Investor Relations)
  • Elon Musk (Chief Executive Officer)
  • Vaibhav Taneja (Chief Financial Officer)
  • Lars Moravy (SVP of Vehicle Engineering)
  • Ashok Elluswamy (VP of AI)

Call Summary

Financial Performance

• Automotive margins excluding credits improved sequentially from 15.4% to 17.9% in Q4 2025.
• Automotive gross profit was flat sequentially despite 16% lower deliveries due to a favorable regional mix toward APAC and EMEA.
• Energy revenue for the year ended at approximately $12.8B, representing 26.6% year-over-year growth.
• Total gross margin finished the quarter above 20.1%, the highest level in over two years.
• Services and other margin declined from 10.5% to 8.8% sequentially, driven primarily by higher employee-related costs for service centers.
• Free cash flow for the quarter was $1.4B after year-end items.

Guidance

• Capital spending guidance was raised materially to expected CapEx in excess of $20.0B for 2026 (forward-looking).
• CapEx for 2025 finished slightly below the prior guidance of $9.0B, and the 2026 outlook reflects a multi-project investment phase (forward-looking).
• Company expects to transition FSD monetization fully to subscription beginning this quarter, which is expected to impact automotive margins in the near term (forward-looking).
• Model S and Model X production is planned to be wound down and stopped next quarter as the Fremont S/X space is reallocated to Optimus production (forward-looking operational change).
• CyberCab production is expected to start in April on an S-curve ramp (forward-looking timeline).
• Optimistic target remains to reach a million-unit-per-year Optimus line in Fremont long term, with an explicitly longer, stretched S-curve due to a fully new supply chain (forward-looking).