Tesla reported fourth-quarter 2025 results after markets closed, topping Wall Street estimates and sending the stock up about 3%. CEO Elon Musk announced plans for $20 billion in capital spending and a pivot toward autonomous vehicles, including ending Model S and X production to shift resources to robot manufacturing.
The company posted revenue of $24.9 billion versus a $25.11 billion estimate, a 2.4% year-over-year decline. Adjusted EPS was $0.50 versus $0.45 expected, and operating income reached $1.41 billion versus $1.32 billion estimated.
Gross margin beat forecasts at 20.1%, compared with a 17.1% estimate. The shareholder deck outlined new product and factory plans across lines and robot projects.
“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. It also said it would ramp six new production lines across its products.
Tesla said it will unveil Optimus V3 in Q1, with production planned “before the end of 2026 and eventual planned capacity of 1 million robots per year.” Subscriptions for Full Self-Driving doubled in 2025, ending the year with about 1.1 million subscribers.
Musk said the one-time FSD purchase option will be removed; the subscription currently costs $99 per month. (Ed. note: FSD has faced federal investigations in recent months.)
At press time, Tesla traded near its 52-week high and remained above its 200-day moving average.
