Tesla reported Q4 revenue of $24.9 billion, down 3% year-over-year but slightly ahead of expectations, with non-GAAP EPS of $0.50 beating consensus of $0.44. The results were driven by strong performance in the energy division, which partially offset a 16% year-over-year decline in vehicle deliveries to 418,227 units.

Key Highlights

  • Automotive gross margin expanded to 20.4% in Q4 (17.9% excluding regulatory credits), a notable sequential improvement despite lower vehicle volumes and a 9% decline in total deliveries for the full year 2025.
  • The Energy Generation and Storage business was a significant bright spot, achieving record quarterly deployments of 14.2 GWh, up 29% year-over-year, with full-year deployments growing 49% to 46.7 GWh.
  • Free cash flow for the full year 2025 increased 74% to $6.2 billion, and the company confirmed that Cybercab and Tesla Semi are on schedule for volume production starting in 2026.