Q4 Earnings Showdown: General Motors Outpaces Tesla in Latest Financial Results

The much-anticipated Q4 earnings reports from America’s two automotive titans have finally arrived, with General Motors and Tesla reporting their fourth-quarter results at the end of January. The financial landscape for both companies tells a starkly different story, particularly when examining how each automaker navigated the challenging Q4 environment—marked by the expiration of the $7,500 federal EV tax credit, which dampened new electric vehicle purchases across the industry.

Q4 Domestic Auto Sales: GM’s EV Gains Amid Market Headwinds

Despite the broader EV market contraction that defined Q4 2025, General Motors demonstrated surprising resilience in its electric vehicle division. The company delivered 25,219 electric vehicles during the quarter, marking a sequential decline from Q4 2024’s 43,982 units. However, this dip masks a more impressive full-year narrative: GM sold a record 169,887 EVs throughout 2025, representing a commanding 48% increase compared to 2024 and solidifying its position as the domestic market’s second-largest EV player behind Tesla but ahead of Ford.

Tesla, maintaining its market leadership position, sold 418,227 EVs in Q4 2025, down from 495,570 units a year earlier. While the company remains the EV segment’s undisputed leader in the United States, its total vehicle deliveries for the full year contracted 8% to 1.63 million units from 2024’s 1.78 million. What stands out is that General Motors’ overall vehicle sales momentum outpaced Tesla’s trajectory, with total sales reaching 2.8 million units—a 5.5% increase for the year.

Tesla’s Q4 Performance: Revenue Declines but Earnings Expectations Remain Positive

Looking at Tesla’s bottom-line results, Q4 revenue is expected to decline approximately 2%, falling to $25.11 billion from the prior year’s $25.71 billion. More concerning for investors is the earnings contraction: Tesla’s Q4 earnings per share (EPS) is projected at $0.44, representing a 40% decline from $0.73 per share in Q4 2024. Nevertheless, Wall Street’s most accurate forecasters anticipate Tesla could exceed consensus estimates, with the Zacks Expected Surprise Prediction (ESP) suggesting Q4 EPS may reach $0.46, representing 3% upside to the current $0.44 consensus.

General Motors’ Q4 Results: Conservative Guidance Meets Positive Guidance

In contrast, General Motors is expected to report Q4 sales of $44.68 billion, down 6% from the prior-year quarter’s $47.71 billion. The more encouraging metric lies in profitability: Q4 EPS is projected to rise 15% to $2.21 per share, up from the prior year’s $1.92. The Zacks ESP analysis indicates that GM’s actual results could exceed analyst expectations, with the highest-accuracy Wall Street estimates pegging Q4 EPS at $2.37—a full 7% above the current consensus, suggesting potential for positive surprise.

Earnings Revision Trends: Why GM Stock Outshines Tesla

The divergence between these two automotive leaders becomes even more pronounced when examining earnings revision momentum. Over the past 60 days, Tesla’s full-year 2025 EPS estimates have fallen 2%, with full-year 2026 projections declining 8%. Tesla is now expected to report annual 2025 earnings of $1.61 per share—a 33% decline from the prior year. While 2026 projections show stabilization with a projected 37% rebound to $2.20 per share, the recent downward revision trend signals analyst caution.

By comparison, General Motors’ consensus estimates have moved in the opposite direction. Q4 EPS revisions have moved upward 2% over the past two months, while full-year 2025 projections are up 1% and 2026 estimates have spiked 7%. GM is expected to close out 2025 with annual EPS of $10.33 per share (down just 2%), followed by a robust 16% rebound in 2026 to $12.00 per share. This upward revision trajectory demonstrates growing analyst confidence in GM’s earnings trajectory.

Investment Verdict: Weighing Risk and Valuation Post-Q4

Given the positive earnings revision momentum supporting General Motors, the company currently holds a Zacks Rank #1 (Strong Buy) designation. Furthermore, GM trades at a compelling valuation of just 6x forward earnings, suggesting the stock remains reasonably priced relative to its earnings potential. Tesla, conversely, has earned a Zacks Rank #4 (Sell) rating, reflecting both the concerning EPS revision trend and an aggressive valuation of 200x forward earnings that leaves limited margin for disappointment.

While Tesla’s ancillary business segments—including energy storage and autonomous vehicle development—continue to generate market enthusiasm, and the company’s AI and robotics initiatives capture investor imagination, the fundamental metrics suggest caution. From a risk-adjusted perspective, General Motors presents a more attractive risk-reward profile heading into 2026, despite consensus expectations that both automakers will deliver Q4 earnings results that exceed Wall Street forecasts.