Tesla to report Q4 as deliveries fall and AI projects face scrutiny

Businessinsider: Tesla is slated to report fourth-quarter earnings on Wednesday amid a volatile year for the stock and growing investor scrutiny.

The company recently reported a 16% year-over-year drop in fourth-quarter deliveries, and Wall Street is watching for signs of weakening EV demand and challenges on Tesla's AI and robotics projects. Analysts cited consensus expectations of $25.1 billion in revenue and $0.34 in earnings per share for the quarter.

Research firms are split on outlooks. JPMorgan cut its EPS estimate to $0.43 from $0.48 and called the stock "increasingly divorced" from a worsening earnings outlook, keeping an underweight rating and a $150 price target. Wells Fargo said "fundamentals look weak" and kept an underweight stance while raising its price target to $130. UBS warned returns from AI efforts could be "further out" and rates the stock a sell with a $247 target. Oppenheimer trimmed its revenue and earnings forecasts, while Cantor and Wedbush offered more bullish scenarios, citing potential AI and robotaxi catalysts with price targets of $510 and $600, respectively.

Investors will be monitoring Wednesday's results for whether they address the delivery declines and clarify the timeline and prospects for Tesla's AI and robotics initiatives, areas analysts have flagged as critical unknowns.