Tesla is set to release its fourth-quarter 2025 results on Jan. 28, with a focus on its Energy Generation and Storage business that is experiencing exceptional growth despite a decline in vehicle deliveries. The company missed earnings estimates in three of the last four quarters, with an average negative surprise of 11.10%.

In the third quarter of 2025, Tesla produced 447,450 units and delivered 497,099 cars worldwide, setting a new record. Total automotive revenues reached $21.2 billion, with energy storage revenues at $3.4 billion, reflecting a 44% year-over-year increase. The Energy Generation and Storage segment continues to show strength and growth.

The Energy Generation and Storage business at Tesla is thriving due to the success of its Megapack and Powerwall products, with new initiatives like a U.S. leasing option for solar plus Powerwall driving demand. The company deployed 14.2 GWh of energy storage products in the fourth quarter and is expected to see an 11% year-over-year revenue increase in the segment.

Earnings projections for Tesla’s fourth quarter stand at $25.11 billion in sales and 44 cents per share, with a slight downward trend in earnings estimates over the past 30 days. While an earnings beat is not definitive, the company’s Energy Generation/Storage segment is expected to drive performance with strong revenues and margins.

In the auto space, Cummins Inc., BorgWarner, and Rivian Automotive are expected to release their fourth-quarter 2025 results in February. Each company has an Earnings ESP above 4% and a favorable Zacks Rank, with strong earnings and revenue projections. These players are well-positioned for potential earnings beats in the upcoming quarter.

Read more at Nasdaq: Tesla to Report Q4 Earnings: Will Robust Energy Unit Deliver Growth?