Tesla stock rises 3% on quarterly earnings beat, Optimus Gen 3
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UPGRADE- Tesla bests revenue consensus narrowly by $140 million.
- Adjusted EPS of $0.50 comes in $0.05 above consensus.
- Operating margin compresses in Q4 with higher operating expenses.
- Tesla will unveil Optimus Gen 3 in Q1.
Tesla (TSLA) stock advanced 3% afterhours on Wednesday following Elon Musk's primary company posting a $0.05 earnings beat. The company posted adjusted EPS of $0.50 on revenue of $24.9 billion.
Revenue bested consensus by $140 million but fell 3% YoY. Tesla's automotive segment saw revenue decline by 11% YoY, while the energy business witnessed a 25% increase YoY.
Tesla’s operating margin compressed by 50 basis points to 5.7% as an 11% decline in operating income was outmatched by a 39% jump in operating expenses.
In the fourth quarter of 2025, Tesla reported free cash flow of $1.42 billion compared with $3.99 billion a year earlier.
Concerning the Optimus humanoid robot project, the company wrote in its release, "We made further progress on the Optimus program in 2025. In Q1 of this year, we plan to unveil the Gen 3 version of Optimus, which will include major upgrades from version 2.5, including our latest hand design. The Gen 3 is our first design meant for mass production. Preparations are underway for the first production line, including supply chain readiness, with start of production planned before the end of 2026 and eventual planned capacity of 1 million robots per year."
- Tesla bests revenue consensus narrowly by $140 million.
- Adjusted EPS of $0.50 comes in $0.05 above consensus.
- Operating margin compresses in Q4 with higher operating expenses.
- Tesla will unveil Optimus Gen 3 in Q1.
Tesla (TSLA) stock advanced 3% afterhours on Wednesday following Elon Musk's primary company posting a $0.05 earnings beat. The company posted adjusted EPS of $0.50 on revenue of $24.9 billion.
Revenue bested consensus by $140 million but fell 3% YoY. Tesla's automotive segment saw revenue decline by 11% YoY, while the energy business witnessed a 25% increase YoY.
Tesla’s operating margin compressed by 50 basis points to 5.7% as an 11% decline in operating income was outmatched by a 39% jump in operating expenses.
In the fourth quarter of 2025, Tesla reported free cash flow of $1.42 billion compared with $3.99 billion a year earlier.
Concerning the Optimus humanoid robot project, the company wrote in its release, "We made further progress on the Optimus program in 2025. In Q1 of this year, we plan to unveil the Gen 3 version of Optimus, which will include major upgrades from version 2.5, including our latest hand design. The Gen 3 is our first design meant for mass production. Preparations are underway for the first production line, including supply chain readiness, with start of production planned before the end of 2026 and eventual planned capacity of 1 million robots per year."
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