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Looking Ahead to Tesla’s 4th Quarter Earnings Report

Analysts and investors are looking for good news and lots of it Wednesday when Tesla has its Q4 earnings call.

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Tesla stock has taken a beating this year having dropped over 33% in the past few months. This comes after the company valuation has seen surging growth over the last two years due to the success of the Model S, and also in large measure because of Elon Musk’s consistently sunny pronouncements. But as oil prices tumble and news of slower than anticipated deliveries of its new Model X crossover SUV continues to swirl, Tesla will need to curb any doubt from the street by issuing a positive outlook in its upcoming Q4 earnings report.

Last week, industry gadfly Bob “Get off my lawn” Lutz told CNBC, “Tesla’s business model is upside down…their costs have always been higher than their revenue. They always have to get more capital, then they burn through it.”

Many people think Lutz is just a troglodyte from a bygone era, but his attitude is beginning to match that of the people on Wall Street. What will it take to turn things around for Tesla’s stock price? According to LearnBonds, the street is looking for four positive signs from the earnings call on Wednesday.

Earnings

Among analysts interviewed by FactSet, the expectation is that Tesla will report earnings per share of $0.17. That is far ahead of the $0.13 adjusted loss from the same quarter a year ago. The company has reported losses for the past four consecutive quarters. Positive earnings would go a long way toward easing investors’ fears.

Revenue

Expectations are that Tesla will report revenue of $1.84 billion for the 4th quarter, a 67% increase over Q4 revenue in 2014. If so, that will calm jittery nerves and give impetus to expectations that Tesla will have $2 billion in revenue in the second quarter of this year.

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Gigafactory

Investors want to hear good news about Tesla’s Gigafactory. Its success is crucial to the company’s upcoming affordable mass market Model 3. The street will want assurances that the Gigafactory is on schedule.

Production numbers

Last month it was widely reported that Tesla was suing a German parts maker for allegedly delaying production of the Model X after the vendor could not deliver on a promise to produce a compelling falcon wing door. Tesla claims that this led to delaying of the Model X. If this leads to any significant delays to its upcoming Model 3, that may signal a rocky road ahead for Tesla. Another thing analysts want to hear is that demand for the Model S is still strong and that the Model X is not poaching sales from its sedan sibling.

How will Tesla respond to all these concerns? Check back Wednesday as we report on updates from the Tesla’s Q4 earnings call.

 

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Tesla begins Robotaxi certification push in Arizona: report

Tesla seems serious about expanding its Robotaxi service to several states in the coming months.

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Credit: Tesla

Tesla has initiated discussions with Arizona transportation regulators to certify its driverless Robotaxi service in the state, as per a recent report from Bloomberg News. The move follows Tesla’s launch of its Robotaxi pilot program in Austin, Texas, as well as CEO Elon Musk’s recent comments about the service’s expansion in the Bay Area.

The Arizona Department of Transportation confirmed to Bloomberg that Tesla has reached out to begin the certification process for autonomous ride-sharing operations in the state. While details remain limited, the outreach suggests that Tesla is serious about expanding its driverless Robotaxi service to several territories in the coming months.

The Arizona development comes as Tesla prepares to expand its service area in Austin this weekend, as per CEO Elon Musk in a post on X. Musk also stated that Tesla is targeting the San Francisco Bay Area as its next major market, with a potential launch “in a month or two,” pending regulatory approvals.

Tesla first launched its autonomous ride-hailing program on June 22 in Austin with a small fleet of Model Y vehicles, accompanied by a Tesla employee in the passenger seat to monitor safety. While still classified as a test, Musk has said the program will expand to about 1,000 vehicles in the coming months. Tesla will later upgrade its Robotaxi fleet with the Cyercab, a two-seater that is designed without a steering wheel.

Sightings of Cybercab castings around the Giga Texas complex suggests that Tesla may be ramping the initial trial production of the self-driving two-seater. Tesla, for its part, has noted in the past that volume production of the Cybercab is expected to start sometime next year.

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In California, Tesla has already applied for a transportation charter-party carrier permit from the state’s Public Utilities Commission. The company is reportedly taking a phased approach to operating in California, with the Robotaxi service starting with pre-arranged rides for employees in vehicles with safety drivers.

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Tesla sets November 6 date for 2025 Annual Shareholder Meeting

The automaker announced the date on Thursday in a Form 8-K.

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Credit: Tesla

Tesla has scheduled its 2025 annual shareholder meeting for November 6, addressing investor concerns that the company was nearing a legal deadline to hold the event. 

The automaker announced the date on Thursday in a Form 8-K submitted to the United States Securities and Exchange Commission (SEC). The company also listed a new proposal submission deadline of July 31 for items to be included in the proxy statement.

Tesla’s announcement followed calls from a group of 27 shareholders, including the leaders of large public pension funds, which urged Tesla’s board to formally set the meeting date, as noted in a report from The Wall Street Journal

The group noted that under Texas law, where Tesla is now incorporated, companies must hold annual meetings within 13 months of the last one if requested by shareholders. Tesla’s previous annual shareholder meeting was held on June 13, 2024, which placed the July 13 deadline in focus.

Tesla originally stated in its 2024 annual report that it would file its proxy statement by the end of April. However, an amended filing on April 30 indicated that the Board of Directors had not yet finalized a meeting date, at least at the time.

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The April filing also confirmed that Tesla’s board had formed a special committee to evaluate certain matters related to CEO Elon Musk’s compensation plan. Musk’s CEO performance award remains at the center of a lengthy legal dispute in Delaware, Tesla’s former state of incorporation.

Due to the aftermath of Musk’s legal dispute about his compensation plan in Delaware, he has not been paid for his work at Tesla for several years. Musk, for his part, has noted that he is more concerned about his voting stake in Tesla than his actual salary.

At last year’s annual meeting, TSLA shareholders voted to reapprove Elon Musk’s compensation plan and ratified Tesla’s decision to relocate its legal domicile from Delaware to Texas.

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Grok coming to Tesla vehicles next week “at the latest:” Elon Musk

Grok’s rollout to Tesla vehicles is expected to begin next week at the latest.

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Credit: Tesla China

Elon Musk announced on Thursday that Grok, the large language model developed by his startup xAI, will soon be available in Tesla vehicles. Grok’s rollout to Tesla vehicles is expected to begin next week at the latest, further deepening the ties between the two Elon Musk-led companies.

Tesla–xAI synergy

Musk confirmed the news on X shortly after livestreaming the release of Grok 4, xAI’s latest large language model. “Grok is coming to Tesla vehicles very soon. Next week at the latest,” Musk wrote in a post on social media platform X.

During the livestream, Musk and several members of the xAI team highlighted several upgrades to Grok 4’s voice capabilities and performance metrics, positioning the LLM as competitive with top-tier models from OpenAI and Google.

The in-vehicle integration of Grok marks a new chapter in Tesla’s AI development. While Tesla has long relied on in-house systems for autonomous driving and energy optimization, Grok’s integration would introduce conversational AI directly into its vehicles’ user experience. This integration could potentially improve customer interaction inside Tesla vehicles.

xAI and Tesla’s collaborative footprint

Grok’s upcoming rollout to Tesla vehicles adds to a growing business relationship between Tesla and xAI. Earlier this year, Tesla disclosed that it generated $198.3 million in revenue from commercial, consulting, and support agreements with xAI, as noted in a report from Bloomberg News. A large portion of that amount, however, came from the sale of Megapack energy storage systems to the artificial intelligence startup.

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In July 2023, Musk polled X users about whether Tesla should invest $5 billion in xAI. While no formal investment has been made so far, 68% of poll participants voted yes, and Musk has since stated that the idea would be discussed with Tesla’s board.

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