Tesla's Stock Declines Post Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 13 2026
0mins
Should l Buy TSLA?
Source: NASDAQ.COM
- Declining Financial Performance: Tesla's January earnings report revealed that while quarterly revenue and profitability exceeded analyst expectations, total deliveries fell by 16% year-over-year to 495,570 units, indicating pressure in a competitive EV market.
- Significant Capital Expenditure Increase: Tesla plans to ramp up capital expenditures to over $20 billion in 2025, primarily directed towards battery technology, the CyberCab autonomous taxi, and related Robotaxi systems, showcasing the company's ambition in future technologies.
- Product Line Adjustments: Tesla will gradually wind down production of the high-end Model S sedan and Model X SUV, focusing instead on the more marketable Models 3, Y, and the Cybertruck, reflecting a strategic shift in the company's focus.
- High Valuation Risks: With a forward P/E ratio nearing 205 and a five-year PEG ratio of 6.8, Tesla's current high valuations pose risks for investors, even if future projects like Optimus and CyberCab prove successful.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 381.260
Low
25.28
Averages
401.93
High
600.00
Current: 381.260
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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