Tesla stock opened up 5.5% at $410.50 before slipping. The initial rise was a surprise for two reasons. For starters, earnings were relatively weak and guidance was “vague,” according to Morgan Stanley analyst Adam Jonas.

Tesla is set to report fourth-quarter earnings after the bell Wednesday, with analysts mostly optimistic the electric vehicle maker could benefit from CEO Elon Musk's ties to President Donald Trump.

After an initial drop, Tesla stock has turned higher, up almost 4% in after-hours trading at $403 a share. Any disappointment with fourth-quarter margins has faded probably because of the outlook for 2025.

Coverage and analysis of electric vehicle maker Tesla's fourth-quarter financial results, Q&A call, and the stock's reaction.

Tesla missed top-line estimates and reported $25.71 billion vs $27.27 billion expected. TSLA shares went down 6% immediately. Expectations were elevated after the stock went on a monster run. The EPS came in at $0.