Although big things were expected from the EV manufacturer entering the year, Tesla (TSLA) stock has fallen ahead of its anticipated Q4 earnings. With all eyes on the data derived from the report, just what can Wall Street expect from the company that has stumbled out of the 2025 starting gate?

The report is poised to arrive in less than a full week and could bring with it some important information. Currently, there are mixed perspectives on the company as it heads into a critical year. Over the last several days, Elon Musk has emerged as a rather divisive figure. Now, all eyes are on if that could hinder investor faith in the company.

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Tesla Drops Yet Again: Here’s What to Expect From Q4 Earnings

It is hard to believe that just one month ago, Tesla’s stock price reached an all-time high of $420. The company had debuted its highly anticipated Robotaxi project and promised to change the autonomous driving industry with its arrival. Moreover, Musk has taken a bigger role in the impending Donald Trump presidency. That had many interested in how it could push his agenda forward, benefiting the company.

Yet, the start of 2025 has proven to not be beneficial to the stock thus far. Although opinions are mixed on how it will end the year, it has not gotten off to the greatest start. Entering Thursday, Tesla Stock again fell as much as 4%, with its Q4 earnings report closing in.

Also Read: Tesla Falls Below $400: Why Experts Say TSLA Has 33% Upside

So, just what can investors expect from its upcoming earnings? Front and center should be its automotive profit margins. Specifically, the company’s more than 495,000 vehicles delivered were a quarterly record. Moreover, the company is expected to benefit from operating cost leverages, stock market platform Morningstar predicts.

Investors should also expect updates on the company’s autonomous driving software. Indeed, its level 3 Full Self-Driving (FSD) unsupervised software is aiming to launch in Texas and California this year. Additionally, its Level 2 FSD is eyeing an arrival in Europe and China.

Finally, the company is expected to launch a new vehicle later this year. The smaller SUV named Model Q will come with a $30,000 price tag and see the firm eyeing increased competition in the SUV market.

What it Means for TSLA Stock

Also Read: Tesla (TSLA) Slides Amid Q4 Deliveries Miss, Cybertruck Explosion

Tesla stock has received a single-star rating from Morningstar analysts. Indeed, they note that the company is currently “significantly overvalued” when compared to their long-term perspective on the company.

The analysts at the firm note that the firm currently holds a fair value estimate of $210. Additionally, they noted the expectation that delivery would return to heights it hadn’t seen in 2024. However, they expect those to “come in below management guidance for 20%–30% growth.”

Although the company has impressive financials, opinions are split. According to CNN Data regarding 57 analysts, only 46% have maintained a buy rating on the stock. Alternately, 23% have called to sell, with the firm holding a median price target of $278. That projection is down 32% from its current position.