Tesla stock took off late Tuesday and early Wednesday as investors look past the disappointing first-quarter results and focus on Chief Executive Elon Musk sticking to a robotaxi rollout in June and his plan to scale back his work for President Donald Trump.
Tesla stock advanced as high as 259.45, closing up 5.4% to 250.74 during Wednesday's stock market action, as the general analyst consensus was positive coming out of conference call late Tuesday. TSLA popped 4.6% to 237.97 on Tuesday.
Wedbush Securities analyst Dan Ives, a longtime Tesla bull, wrote on Wednesday that "more important than numbers" he was looking for Musk to calm shareholders coming out of a "disaster quarter."
"He did it loudly and clearly in a conference call that we view as a turning point in the Tesla story," Ives wrote.
Ives added that Musk's commitment to stepping back from his government work next month "was an off ramp for Musk out of the Trump White House."
"The brand damage caused by Musk in the White House/DOGE over the past few months will not go away just by this move and some of the damage will be stained forever in Europe and the U.S.," Ives said. "But this was the time to close one dark chapter and open a brighter one for the Tesla story with autonomous and robotics front and center."
Analyst Take On Tesla
Meanwhile, Piper Sandler analysts wrote early Wednesday that the "best-case scenario has materialized" from Tesla's Q1 report, with the financial results not being considered and all the attention going to the robotaxi rollout in June and the possibility for lower-priced vehicles coming this year.
Piper Sandler analysts believe investors "can look forward to some interesting catalysts in the weeks ahead" and that "this alone should be enough to keep the bears at bay." The firm reiterated an overweight rating on Tesla stock with a 400 price target.
Benchmark analyst Mickey Legg also wrote Wednesday that "despite near-term road bumps," the long-term Tesla bull thesis remains intact coming out of the Q1 call.
Legg said that Tesla's current market outlook remains clouded as the industry navigates tariffs, but there is long-term upside with cheaper models coming, the launch of the robotaxi business in June, and the continued development of Optimus robots. Benchmark has a buy rating on TSLA with a 350 price target.
Morgan Stanley analyst Adam Jonas also wrote late Tuesday 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.
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."
Tesla Q1 Earnings At A Glance
The EV giant saw first-quarter EPS fall 40% more than expected. Auto revenue plunged 20% as Elon Musk brand damage took a toll and the refreshed Model Y began rolling out late in the quarter. Tesla pulled its target for delivery growth in 2025.
Tesla's auto gross margins excluding regulatory credits came in at 12.5%, the lowest since Q2 2012.
Operating income was $399 million. But excluding regulatory credits of $595 million, Tesla had an operating loss.
Tesla, in its earnings statement, said a "pilot" robotaxi launch will take place in Austin in June. The company added that output will start by midyear for an "affordable" EV, with executives later saying that the cheaper EV line will "resemble" the Model Y or 3. Several reports had stated that the first cheap EV would be a stripped-down Model Y.
Musk, on the earnings call, said he'll scale back his work starting in May for the Trump White House at the Department of Governmental Efficiency (DOGE). However, he said he could still have a day or two a week on government work.
Tesla Earnings Miss But Elon Musk Bullish On Robotaxis. June Launch Still On.
Meanwhile, China EV giant BYD is expected to report this week as well. BYD recently said that Q1 net income roughly doubled to about $1.2 billion-$1.4 billion, which would top Tesla for the first time and be another quarter of accelerating growth.
BYD stock jumped 7.5% on Tuesday to 49.13, back above the 50-day line and breaking a trendline within an emerging consolidation. The EV giant is not yet trading Wednesday.
Tesla Stock Action
Tesla stock fell 4.3% to 241.37 last week. The stock is currently down about 51% from its 488.54 peak on Dec. 18. Prior to earnings, TSLA shares were trading back near their March lows of 214.25. Still, Tesla stock remains down 41% so far in 2025 as of April 22, one of the worst performers in the S&P 500.
Tesla stock is set to open Wednesday above its 21-day line but remain well below its 50-day and 200-day lines.
Ahead of the Q1 earnings call, concerns about Tesla's growth, robotaxi timeline as well as fears about Musk's focus and impact on Tesla's brand image took a toll on TSLA stock.
Trump's Auto Tariffs Are Here. What Is Next For The U.S. Auto Industry?
Meanwhile, since President Donald Trump announced the 25% auto tariffs, the 32 stocks in the IBD Auto Manufacturers industry group collectively dropped around 17%. The group has declined around 40% 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 8.76%. 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 66 Composite Rating out of a best-possible 99. Shares also have a 64 Relative Strength Rating and an 84 EPS Rating.
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