Tesla announced worse-than-expected first-quarter earnings and revenue late Tuesday. Shares of TSLA advanced in after-hours trade following Chief Executive Elon Musk's comments during the conference call regarding the robotaxi rollout in June and plans to scale back his work for President Donald Trump.
Tesla, in its earnings release, said a "pilot" robotaxi launch is still on track in Austin this June while sticking to its plan for an "affordable" EV to start production by mid-year.
Tesla reported that Q1 EPS sank 40% to 27 cents per share while revenue fell 9% to $19.335 billion. Analysts expected earnings of 41 cents a share and sales totaling $21.27 billion, according to FactSet. However, the sharps consensus pegged quarterly revenue at $19.76 billion.
Tesla Q1 consensus earnings projections came down more than 40% since the end of 2024. The Q1 EPS target was $3.31 just before Tesla's Q4 earnings release. Prior to the earnings release, Morgan Stanley analyst Adam Jonas warned early Tuesday to "hang on for some weak numbers."
7:13 p.m. ET
Early Analyst Reaction
Morgan Stanley analyst Adam Jonas writes that analyst consensus views on full-year earnings "will likely continue to be revised down following the earnings miss."
"However, the quantum of the miss was largely within low buy-side expectations," Jonas wrote.
Meanwhile, CFRA autos analyst Garrett Nelson wrote late Tuesday that TSLA shares "traded slightly higher after hours, which we think reflects better-than-expected gross margins and the fact its product timeline remains unchanged."
7:01 p.m. ET
Tesla Earnings Call Ends
The call ended at 7:01 p.m. ET with Tesla stock up 5% after hours.
7:00 p.m. ET
Tesla Says Cheaper EVs Will 'Resemble' Existing EVs
Regarding the new affordable model, the Tesla exec team said the models that will come out in the coming months "will be built on our lines and will resemble, in form and shape, the cars we currently make, but the key is that they'll be affordable."
This suggests that there will not be a "new" vehicle line and that future cars will be similar to the current Model Y or Model 3 vehicles.
Multiple reports have stated that the first cheaper EV would essentially be a stripped-down Model Y.
6:50 p.m. ET
10-20 Robotaxis At Launch?
At launch for the Model Y robotaxi in Austin, Musk says they are still debating what it will look like but that that it will be "maybe 10-20" vehicles on day one.
6:38 p.m. ET
Tesla Downplays 'Musk Brand Damage'
On "Musk brand damage," the team said that "interest remained high" in Q1. Musk said that Tesla is not "immune to sort of the macro demand. So when there is economic uncertainty, people generally want to pause on a major capital purchase, like a car."
Absent macro issues, we don't see any reduction in demand," Musk said.
6:32 p.m. ET
Tesla Stock Jumps
Tesla stock is up 5.5% after hours, with much of that reflecting President Trump's market-friendly comments about China tariffs and Fed chief Jerome Powell.
6:31 p.m. ET
Tesla On Supply Chains
On supply chains, the Tesla team says that its "high volume" vehicles have more than 85% North America components, excluding the battery, and that its Shanghai vehicles have more than 95% local content. However, the company is not "100%" insulated from tariffs.
6:27 p.m. ET
'Unboxed' Manufacturing 'Progressing'
Tesla execs say that its "unboxed" manufacturing effort is "progressing." This is the new production method for the CyberCab. The Tesla team said that the "next big test" for the production method is the CyberCab vehicle at scale.
Road tests are due in the coming months, according to Tesla execs.
6:15 p.m. ET
Personal Self-Driving 'This Year'
Musk says within the U.S. personal use Tesla vehicles will have unsupervised FSD "before the end of this year." He later clarified "many cities" in the U.S. this year.
6:13 p.m. ET
Musk Sees 'Localized' Self-Driving?
On fully autonomous driving, Musk said that "it just does seem increasingly likely that there will be a localized parameter set." Musk added that driving, like a human, will not be as good in a "blizzard" in the Northeast.
"It's increasingly obvious that there's some value to having a localized set of parameters for different regions and localities," Musk said.
Elon Musk and Tesla have traditionally touted Level 5 self-driving that works anywhere and anytime.
Meanwhile, the CyberCab product is on track for production next year, according to Tesla execs.
6:08 p.m. ET
Austin In June, 'Large Scale Autonomy' By Late 2026
The Tesla EVs that will be autonomous in Austin in June will be Model Ys, according to Musk.
"I feel confident predicting large scale autonomy around the middle of next year, certainly the second half of next year," Musk said. It is unclear what vehicles.
6:04 p.m. ET
Tesla Bitcoin Loss
Taneja appeared to say there was a $472 million loss associated with Bitcoin in Q1. In Q4, Tesla's net income was boosted by a recent change in how companies account for holdings of digital currencies. This policy change resulted in an earnings per share add-on of 68 cents in Q4, with a net income increase of $600 million.
6 p.m. ET
Tesla Brand Damage Hurt Sales
CFO Vaibhav Taneja confirms the "negative impact of vandalism and unwarranted hostility" in "certain markets" on Tesla vehicle sales. This refers to the protests against Musk for his work with the Trump White House.
5:55 p.m. ET
Musk Ends Opening Remarks
Musk ends his opening remarks by saying that he looks "forward to continuing to lead the team to great success in the future."
5:54 p.m. ET
Model Y Changeover
On Tesla's vehicle unit deliveries, Musk said that Q1 is always a difficult quarter which is why they chose it to switch over to the new model production line.
5:53 p.m. ET
Musk On Tesla Tariff Impact
On tariffs, Musk says that Tesla seems to be the "least affected car company." However, he adds that "tariffs are still tough on a company when margins are still low."
5:52 p.m. ET
Optimistic On Optimus
"In regards to Optimus, we expect to have thousands of Optimus robots working in Tesla factories by the end of this year," Musk says. He adds they could produce a million units per year in around five years.
5:49 p.m. ET
Elon Musk On Robotaxis
There are some challenges, and I expect that this year will be, probably be some unexpected bumps this year, but I remain extremely optimistic about the future of the company.The future of the company is fundamentally based on large scale autonomous cars and large scale, large volume, vast numbers of autonomous human robots," Musk said on the current state of Tesla.
"We expect to be selling fully autonomous rides in Austin in June," Musk says, regarding the robotaxi. "The team and I are laser focused on bringing robotaxi in Austin in June," Musk said. "Unsupervised autonomy will first be solved for the Model Y in Austin."
5:41 p.m. ET
Musk To Reduce DOGE Time
Chief Executive Elon Musk kicked off the Q1 earnings call discussing his work at DOGE for President Donald Trump. "Starting next month, in May, my time allocation to DOGE will drop significantly."
"Starting next month I will be allocating far more of my time to Tesla," Musk said.
But he still expects to work a day or two a week on government work, as long as President Trump wants him, perhaps throughout Trump's term.
5:37 p.m. ET
Tesla Stock Rallies On Trump Comments
Teslla stock rose 3% with the earnings call underway. President Donald Trump said China tariffs will "come down substantially" and said he has "no intention" of firing Fed chief Jerome Powell.
4:51 p.m. ET
Free Cash Flow Comes Down Compared To Q4
Tesla ended Q1 with cash flow of $664 million, up 126% compared to a year ago, but down from $2.03 billion at the end of Q4. Cash and cash equivalents increased 38% to $36.996 billion in Q1.
The weaker cash flow came despite capital spending plunging to $1.492 billion vs. $2.78 billion in Q4 and Q1 2024.
4:46 p.m. ET
Tesla, Trump Tariffs And China Batteries
The EV company also said that it launched its Inflation Reduction Act-compliant 4680 battery cell in Q1.
"Building on our efforts to reduce supply risk, we have developed our 4680 supply to ensure each component is sourced from at least two countries of origin," Tesla said.
Tesla added that its lithium refining and cathode production plants are on track to start production in 2025, "on-shoring production of critical battery materials to the U.S."
This update comes as President Donald Trump's trade policy has been front and center in recent weeks. While Tesla, due to its supply chains, is thought to be among the least impacted by the Trump tariffs, the company will not be completely unscathed.
Tesla traditionally has not mass-produced its own batteries. For lithium-ion batteries, its joint venture partner Japan's Panasonic makes the cells and Tesla packages them. Tesla also buys lithium-ion batteries from South Korea's LG.
The company's battery storage business is also exposed to China, buying lithium iron phosphate (LFP) batteries from China's CATL as well as some LFP batteries from rival EV maker BYD. Trump currently has a 145% tariff on China-made products coming into the U.S.
4:40 p.m. ET
Tesla Confirms Robotaxi In June
Tesla also reported it is still on track for the "pilot launch of Robotaxi in Austin by June." The company added that the plan is also for "builds of Optimus on our Fremont pilot production line in 2025, with wider deployment of bots doing useful work across our factories."
4:37 p.m. ET
Core Auto Margins Lowest Since 2012
Total gross margin declined 104 basis points to 16.3%. Auto gross margins excluding regulatory tax credits came in around 12.5%, slightly below the analyst consensus projects of 13.1%, according to FactSet. That's the lowest auto gross margins since Q2 2012 when Tesla delivered 5,612 vehicles, according to Morgan Stanley.
A year ago auto gross margins were 16.4%.
Futures: Tesla Earnings Dive, Musk In Focus; Bullish Market Move
4:34 p.m. ET
Tesla Blames Model Y Update For Revenue Drop
Tesla reported its 9% revenue decline was "in part due to the Model Y update across all four vehicle factories" which weighed on vehicle deliveries, a reduced vehicle average selling price and a negative foreign exchange impact.
4:33 p.m. ET
Tesla Will 'Revisit' Full-Year Outlook
The EV giant said that it would "revisit" its 2025 guidance in its second-quarter update.
"It is difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains, our cost structure and demand for durable goods and related services," Tesla said in the earnings release.
"While we are making prudent investments that will set up both our vehicle and energy businesses for growth, the rate of growth this year will depend on a variety of factors, including the rate of acceleration of our autonomy efforts, production ramp at our factories and the broader macroeconomic environment," the company added.
4:27 p.m. ET
Tesla: 'New Vehicles' On Track
The EV giant reports that its "plans" for new vehicles, including more "affordable models," are still on "track for start of production in the first half of 2025."
Tesla added in the earnings release that these "new vehicles" will utilize its next generation platform as well as its current platforms and will be produced on the same manufacturing lines as its current vehicle lineup.
That followed reports that the affordable vehicle's output would be pushed back several months, though that could refer to mass production. The affordable EV reportedly is a stripped-down Model Y, but Tesla has never given any details, let alone an image or prototype.
The EV giant also said that the Cybercab is scheduled for volume production starting in 2026.
4:00 p.m. ET
Tesla Stock At The Stock Market Close
TSLA jumped as high as 242.79 intraday, before closing up 4.7% to 238.23 during Tuesday's stock market action. Tesla stock fell 5.8% to 227.50 on Monday. Shares ended last week down 4.3% to 241.37.
The earnings release is coming up.
2:39 p.m. ET
Investor Questions
The top five investor questions to be asked on the earnings call are:
Is Tesla still on track for releasing "more affordable models" this year? Or will you be focusing on simplified versions to enhance affordability, similar to the RWD Cybertruck?
When will FSD unsupervised be available for personal use on personally-owned cars?
How is Tesla positioning itself to flexibly adapt to global economic risks in the form of tariffs, political biases, etc.?
Robotaxi still on track for this year?
Did Tesla experience any meaningful changes in order inflow rate in Q1 relating to all of the rumors of "brand damage"?
According to Tesla, 12,780 investors participated in the question voting process for the Q1 call.
2:19 p.m. ET
Tesla Rival Flashes Buy Signal As Earnings Loom
China EV giant BYD jumped 7.8% to 49.25 Tuesday afternoon, back above the 50-day line and breaking a trendline within an emerging consolidation. Arguably that's offering an early entry, but the volatile market and the U.S.-China trade war raise the risks.
Also, BYD is likely to report first-quarter earnings this week. BYD recently said that Q1 net income roughly doubled, suggesting yet another quarter of accelerating growth. BYD's net income is closing in on Tesla's.
BYD is easily the largest seller of electric vehicles, though over half of its EVs are plug-in hybrids. In the last two quarters, BYD outsold Tesla in fully battery electric vehicles (BEVs).
2:12 p.m. ET
TSLA Rises But Poll Finds Musk/Tesla Unpopular
Tesla's Q1 earnings results are about two hours away, with the conference call due later.
The CNBC All-America Economic survey, released Tuesday, finds that more than than 47% of the U.S. public have a negative view of Tesla. CNBC reported Tuesday that about 27% are positive on Tesla, while 24% are neutral.
Meanwhile, about a third of the public have a positive view of General Motors with 51% neutral and 10% negative.
Specifically regarding Musk, Half of those surveyed view Musk negatively. About 36% see him positively and 16% are neutral. Among Democrats, Musk's net approval (positive minus negative) is -82 and -49 for independents. GOP respondents are +56, according to the CNBC All-America Economic survey.
The survey polled 1,000 people from April 9 through April 13.
Gross Margins And Bitcoin
Bitcoin impact is something to watch with earnings. In Q4, Tesla's net income was boosted by a recent change in how companies account for holdings of digital currencies. This policy change resulted in an earnings per share add-on of 68 cents in Q4, with a net income increase of $600 million.
The company delivered 336,681 EVs in Q1, down 13% vs. a year earlier and the lowest since Q2 2022. They fell 32.1% vs. Q4's record 495,570 EVs. The bright spot is Tesla China, where sales appeared to edge higher vs. a year earlier, but those tend to be lower margin. U.S. and European sales have tumbled on Musk's brand woes. Tesla also deployed 10.4 gigawatt-hours of energy storage products in Q1, down slightly vs. Q4's record 11 GWh but up 156% vs. a year earlier.
DOGE's Loss Of Tesla's Elon Musk Could Be This Group's Gain
Analyst consensus projects auto gross margins excluding regulatory tax credits of 13.1%, according to FactSet, compared to 16.4% a year ago. FactSet consensus also has the average selling price per vehicle coming in at $37,910 in Q1, down from $43,790 in Q1 2024.
What To Look For Tuesday: Company Update?
As usual, the focus will be on Musk and the earnings call late Tuesday. Tesla is also changing things up and have said "in addition to posting first quarter results" it "will hold a live company update and question and answer" session.
What this means is anybody's best guess. Musk in the past has repeatedly said earnings calls are not for product announcements. Could this mean Musk will give significant details on the new affordable vehicle? Or could it be similar to the recent all-hands company meeting where he told employees to hold onto their Tesla stock, touting the future of artificial intelligence and robotics?
Tesla Rises On Robotaxi Hopes Despite Earnings Miss. Elon Musk Sees 'Epic' 2026.
In any case, investors and analysts will look to see if Musk sticks to his forecast for unsupervised, self-driving ride hailing in Austin this June, any details about the "affordable" vehicle, if Musk sees delivery growth in 2025 after a weak Q1 and sluggish start to April and what are his plans around his work with the Trump White House.
Reuters late Friday reported that Tesla will delay its upcoming "affordable" EV by at least three months. Tesla had said it planned production of a lower-cost vehicle by mid-year, but various reports had suggested it would come in late 2025 or 2026. The latest report said production will start in the U.S., followed by China and Europe. The EV giant has not given any details about the EV, but multiple reports have said it'll be a stripped-down Model Y rather than a new form factor, like a hatchback.
Wedbush Securities analyst Dan Ives, a longtime Tesla bull, wrote on Sunday that Musk "needs to leave government" and be a full-time CEO for Tesla. Ives added that Musk on the Q1 earnings call must "lay out the timeline/hard facts" around the rollout of autonomous vehicles and robotics over the next 6-12 months. Ives is also looking for clearly answers around when the "new lower cost vehicle" will hit the production line.
The Five Answers Tesla Investors Need During Earnings
"If Musk chooses to stay with the Trump White House it could change the future of Tesla/brand damage will grow.... A huge week ahead for Musk, Tesla, and investors," Ives wrote.
Tesla Stock Action
Tesla stock fell 4.3% to 241.37 last week. The stock is down about 53% from its 488.54 peak on Dec. 18. Shares are back near their March lows of 214.25. Still, Tesla stock remains down 40% so far in 2025 and is one of the worst performers in the S&P 500.
Concerns about Tesla's growth and robotaxis as well as fears about Musk's focus and impact on Tesla's brand image have taken a toll on TSLA stock.
Trump's Auto Tariffs Are Here. What Is Next For The U.S. Auto Industry?
Since President Donald Trump announced the 25% auto tariffs, the 32 stocks in the IBD Auto Manufacturers industry group collectively dropped around 20%. The group has declined around 42% in 2025. That puts the industry at 101 out of the 197 sectors tracked by IBD, with No. 1 the strongest and 197 the weakest sector.
Tesla stock has a 21-day average true range of 9.01%. The ATR metric is available on IBD's MarketSurge charting tool. It gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
In the current market, IBD suggests stocks with ATRs of 3% or below.
Tesla stock has a 60 Composite Rating out of a best-possible 99. Shares also have a 51 Relative Strength Rating and an 84 EPS Rating.
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