Tesla's stock faced a turbulent trading day, initially dropping due to disappointing fourth-quarter earnings that missed Wall Street's expectations. The company reported $25.7 billion in revenue, falling short of the anticipated $27.26 billion, and a net income of $2.5 billion, which, while a 3% increase y/y, still missed forecasts. The decline in automotive revenue, driven by reduced average selling prices across its vehicle lines, further pressured the stock. However, investor sentiment shifted positively in after-hours trading, buoyed by Tesla's plans to introduce more affordable models and the upcoming Cybercab model in 2026, which helped the stock recover.
The T-Rex 2X Inverse Tesla Daily Target ETF (TSLZ) saw a modest increase, closing at $2.52, up 5% from the previous close of $2.40, before settling at $2.41 at 5:40 PM on Wednesday, January 29.