Tesla Q4 earnings updates: Wall Street analysts are jittery over sales slump, AI roadmap

Tesla earnings are looming, and Wall Street's outlook is mixed as vehicle sales remain in a rut and the company's AI plans continue to take shape.

Analysts said ahead of the Wednesday report that they see challenges ahead for Elon Musk's carmaker, including uncertain EV demand and unclear timelines for some of its major AI projects.

While some firms are bullish on the robotaxi rollout expanding this year, others say the stock has largely priced in the bull case for AI and robotics, leaving little room for disappointment on either front.

Tesla will publish its results after the 4 p.m. closing bell, with its call with analysts set to begin around 5:30 p.m. ET.

Cantor: Expecting a handful of AI catalysts

Cantor analysts highlighted potential catalysts that could boost Tesla's stock down the line, like the company rolling out full self-driving in China and Europe, expanding its robotaxi presence across the US, and launching Optimus commercially in 2027.

The firm's analysts reiterated its "overweight" rating on the stock and set a $510 price target, implying 17% upside from Tesla's current levels.

Wedbush Securities: Growth potential from AI

Wedbush, a longtime Tesla bull, remains optimistic about Tesla's AI and robotics projects.

The research firm said it believed Tesla could hit a $2 trillion valuation in the next year as the company begins "full scale volume production" of some of its autonomous and robotics products.

"We believe Tesla will own ~70% of the global autonomous market over the next decade as no other company can match the scale and scope of Tesla coupled with its broadening AI footprint," a team led by Dan Ives wrote in a note.

The firm reiterated its "outperform" rating and issued a $600 price target on Tesla, implying 38% upside from current levels.

Wall Street expects Tesla to report Q4 revenue of $25.11 billion

Fourth Quarter