January 29, 2025 at 12:03 PM Christian Marquardt - Pool/Getty Images Tesla will release its fourth-quarter earnings after the closing bell on Wednesday. Shares in the electric-vehicle maker were down 1.4% year-to-date through Tuesday. Investors are on high alert for key details on self-driving initiatives and robotaxis. Tesla will report fourth-quarter earnings on Wednesday after the closing bell. Wall Street is bullish headed into the results, with excitement growing for the EV maker's AI inroads. Investors will be listening for updates on self-driving initiatives, robotaxis, and cheaper vehicle models. Tesla's earnings-release time is roughly 4:30 p.m. ET, and its conference call with analysts will start around 5:30 p.m. Tesla's stock was down 1.4% year-to-date through Tuesday's close, lagging the the S&P 500's 3% gain. Morgan Stanley: Tesla is an "embodied AI ETF." Tesla is set for a strong fourth-quarter report, underscored by inventory-supported free cash flows and the potential for deferred revenue tied to full self-driving. Morgan Stanley expects most attention to fall on Tesla's announcements regarding AI and automation, including Cybercab deployment, an "AI Day," and progress on the firm's humanoid "Optimus" robot. Given its many tech projects, investors can treat Tesla as an "embodied AI 'ETF,'" the bank said. In this role, it will benefit from White House policies that will likely boost domestic AI business. "Tesla's role in helping to 'fill the void' of next gen manufacturing and supply chain will be an increasingly consequential driver of growth and shareholder value," wrote equity analyst Adam Jonas. Morgan Stanley has an "overweight" rating on Tesla with a $430 price target, implying nearly 10% upside from Wednesday's stock price. RBC: Wider adoption of FSD to lead to higher margins. Patrick Pleul/POOL/AFP Although Tesla's latest deliveries numbers disappointed earlier this month, RBC is gearing for deliveries to be a bright spot for the EV maker in 2025. The introduction of affordable models in the first half of the year will help deliveries create a $2.7 billion boost to gross profits, though lower pricing will create a billion-dollar offset. More immediate catalysts revolve around Tesla's achievements in autonomy. "While we do think the new administration could help with federal deregulation of self-driving vehicles, ultimately, the success of Tesla's autonomy ambitions, especially as it relates to robotaxis, will come from how well [full-self driving] develops," the bank wrote. Wider adoption of FSD would lead to higher margins in the near term. This isn't impossible, and could happen with help from price cuts, RBC said. RBC has an "outperform" rating on Tesla stock and a price target of $440, about 12% above current levels. Tesla earnings expectations: Fourth-quarter adjusted EPS estimate is $0.75 Fourth quarter