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Tesla Q4 earnings updates: Wall Street analysts are jittery over sales slump, AI roadmap

First, there was a $2 billion investment in xAI . But the biggest surprise came when Elon Musk announced Tesla would discontinue the Model S and Model X entirely, giving them an “honorable discharge.”

Tesla earnings are here — and they arrived with some surprise announcements.

Tesla is also entering into a “framework agreement” with xAI, Musk’s AI company, to explore additional collaborations. On the robotics front, Tesla plans to unveil its third-generation Optimus robot later this quarter. The much-delayed Roadster is expected to be demoed in April, Musk said.

Wall Street was generally pleased with the earnings result. The EV maker delivered $24.9 billion in revenue for the quarter, missing estimates, but its adjusted earnings per share were $0.50, ahead of expectations.

The stock rose 3% in after-hours trading.

“2025 marked a critical year for Tesla as we further expanded our mission and continued our transition from a hardware-centric business to a physical AI company,” the company wrote in its report.

Scroll on for the full play-by-play from Tesla’s analyst call:

Source: RhinoEasy News

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