Tesla reported first-quarter earnings on Tuesday following the bell that missed the mark, however, the company is still expecting to launch new vehicles in the first half of 2025. The company reported that the automotive revenue jumped 20% from a year earlier. Here is Tesla’s earnings report:
- Earnings per share: 27 cents adjusted against 39 cents estimated
- Revenue: $19.34 billion against $21.11 billion estimated
Total revenue slipped 9% from $21.3 billion a year prior. In the same period last year, the automotive revenue dropped 20% to $14 billion from $17.4 billion. For the decline, the company gave a reason, and it was the need to update lines at its four vehicle factories. Tesla said that they should update the lines while starting to make a refreshed version of their popular Model Y SUV. The company also said that the lower average selling prices and sales incentives have dragged the revenue and profit.
2025 has been a brutal start for Tesla, as the CEO, Elon Musk, spends much time in President Donald Trump’s White House. The company said that plans for launching new vehicles are on the way. The production of new vehicles will start in the first half of 2025. Tesla is also expecting that Robotaxi volume production will start in 2026. Including Robotaxi testing, these were the primary investor concerns in Tesla’s earnings.
Tesla blamed trade uncertainty as a reason for the slumping sales. The company said in a statement, “This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term”.
Musk said that he told Donald Trump that the lower tariffs were better for the country. However, the decision on tariffs ultimately depends on the President. Due to this uncertainty, the company said that it would revisit its 2025 guidance in the second quarter financial update.
Tesla stock rose to $480 per share in December. During that time, Donald Trump became the President with tremendous support from CEO Elon Musk. More investors were confident that the company would benefit from the relationship. However, the actual scenario is just the opposite of what was predicted.
Tesla’s stock price has plunged 50% from its record high, and market share losses have hastened. Elon Musk’s great involvement in politics has formed a “brand crisis” for Tesla, as per the equity analyst Dan Ives.
