Tesla is set to release its fourth-quarter 2025 results on Jan. 28, with earnings estimated at 44 cents per share and revenues at $25 billion. Estimates show a 40% decline in earnings and a 3% revenue contraction year-over-year. In the past year, Tesla missed EPS estimates on three occasions.

The fourth quarter saw Tesla deliver 418,227 vehicles, down 16% from 2024, with sales impacted by the withdrawal of federal EV tax credits. Legacy automakers like Ford and General Motors also saw sharp declines in EV sales. Tesla’s energy business is expected to offset some of the automotive revenue decline.

Tesla’s stock has declined over the past three months and is considered overvalued based on its price/sales ratio. The slowdown in deliveries highlights pressure on its core EV business. CEO Elon Musk is focusing on autonomous vehicles and AI for future growth, but meaningful revenues from these projects are years away.

Despite the upcoming earnings report, Tesla is facing challenges in its core business, making it a high-risk, high-reward stock. Investors are advised to wait for management updates on 2026 deliveries and robotaxis before considering buying Tesla stock. The company has a lot of catching up to do in the autonomous vehicle space.

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Read more at Nasdaq: Buy, Sell or Hold TSLA Stock? Key Tips Ahead of Q4 Earnings