Tesla Inc is expected to shift its focus towards Full Self-Driving (FSD), robotaxis, and Artificial Intelligence (AI) in its upcoming earnings report. The company will announce its fourth-quarter financial results, and analysts are eager to learn more about its future growth prospects.
Tesla Q4 Earnings Estimates
Analysts predict that Tesla will report a revenue of $24.90 billion for the fourth quarter, down from $25.71 billion in the same quarter last year. The company has beaten revenue estimates in two consecutive quarters and in four out of the last 10 quarters overall. Earnings per share are expected to be 40 cents, down from 73 cents per share in the same quarter last year.
What Tesla Analysts Are Saying
Wedbush analyst Dan Ives believes that Tesla’s story revolves around AI growth from autonomous vehicles and robotics initiatives. He expects the company to focus on its robotaxi rollout across the US, including the removal of safety drivers from its fleet. Ives maintained an Outperform rating and a price target of $600 ahead of the earnings report.
Ives predicts that Tesla will own approximately 70% of the global autonomous market over the next decade, with no other company able to match its scale and scope. He also believes that Tesla’s autonomous story is worth $1 trillion over the next few years, which could unlock in the coming months. The analyst expects Tesla to hit a market capitalization of $2 trillion in 2026, with a bull case of $3 trillion by the end of the year.
Key Items to Watch for Tesla Shareholders
Several key items will be watched closely by Tesla shareholders, including:
- The company’s robotaxi progress and stabilized demand
- The removal of safety drivers from its fleet
- The rollout of Cybercab and Optimus
- The potential for early access to the SpaceX IPO for long-term Tesla shareholders
Some of the top questions from shareholders that may be answered during the earnings call include:
- When will FSD be 100% unsupervised?
- What is the current bottleneck to increase robotaxi deployment and personal use of unsupervised FSD?
- Can the company share the current number of Optimus units deployed in Tesla factories and their impact on factory efficiency?
- Can purchased FSD be tied to owner accounts rather than locked to a specific car?
Tesla Stock Price Action
Tesla’s stock price was down 0.99% to $430.91 on Tuesday, with a 52-week trading range of $214.25 to $498.82. The stock is up 9% over the last 52 weeks. As Tesla enters its next growth stage, investors will be watching closely to see how the company’s focus on AI, FSD, and robotaxis will impact its future prospects.