Broker Name: DBS Bank
Date of Report: June 2025 (latest data reference: 26 Jun 2025)

Excerpt from DBS Bank report.

Report Summary:

• Tesla reported a 16% year-on-year decline in 4Q25 deliveries to 418.2k units, and full-year 2025 deliveries decreased by 9% to 1.64 million units, marking the company’s first annual volume contraction.
• The expiry of US EV tax credits in September 2025 has contributed to demand headwinds, with consensus forecasts for 2026 deliveries (+7% y/y) facing downside risks.
• Adjusted EPS for 4Q25 missed consensus by 9%, with margins under pressure from tariffs, restructuring, and elevated AI R&D, though revenue rose 12% year-on-year to \$28.1 billion.
• Tesla’s future share price performance is expected to be driven more by progress in Full Self-Driving (FSD) technology and robotaxi milestones (such as the Cybercab), rather than near-term EV volumes.
• Management remains focused on long-term profitability from AI-powered software and fleet services but warns of near-term cost and tariff headwinds.
• Investors are increasingly prioritizing robotaxi deployment, FSD adoption, and AI mobility strategy over short-term delivery numbers.

Above is an excerpt from a report by DBS Bank. Clients of DBS Bank can be the first to access the full report from the DBS Bank website: https://www.dbs.com.sg