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📊 Tesla (TSLA) Earnings Review – Q1 2025

A man in a suit uses a hose on a burning Tesla building. Flames and smoke dominate the scene. Text reads, "IT WILL ALL BE OK IN THE END."
“We’ve been on the edge of death a dozen times. This is not one of those times.” CEO Elon Musk

🏢 TSLA Company Snapshot

Tesla, Inc. (TSLA) is a global leader in electric vehicles (EVs), energy storage solutions, and autonomous driving technology. The company operates across multiple sectors — automotive, energy generation and storage, and AI-driven robotics — with a mission to accelerate the world's transition to sustainable energy.

They are focusing on :

  • Affordable EV Launch: TSLA will produce a $25,000 compact EV starting mid-2025, using next-gen platforms to scale affordability and target broader markets.

  • Autonomous Driving Push: Focus on Full Self-Driving (FSD) and Cybercab robotaxi launch by 2025, aiming for high-margin autonomous ride-hailing services.

  • Production Expansion: Target 20–30% delivery growth in 2025, scaling Model Y, Cybertruck, and Semi production with new Gigafactory capacity.

  • Energy and AI Growth: Expand high-margin energy storage (Powerwall/Powerpack) and advance AI for FSD and Optimus robot, diversifying revenue.

  • Brand and Competition: Address brand perception challenges and counter competition from BYD and others through cost optimization and innovation.


✅ Key Takeaways

  • Beat/Miss: EPS missed by $0.26; Revenue missed by $2.76B

  • Guidance: No formal guidance provided due to global trade uncertainties

  • Q&A Focus: Analysts probed into declining automotive margins, the impact of tariffs, and the timeline for new product rollouts

  • Tariffs/Regulatory: Management acknowledged potential negative impacts from new U.S. tariffs on Chinese imports, particularly affecting battery supply chains

  • Tailwinds/Headwinds: Strong growth in energy storage offset by declining vehicle deliveries and pricing pressures

🔢 Headline Numbers

Metric

Reported

Estimate

Surprise

EPS

$0.27

$0.53

–$0.26

Revenue

$19.34B

$22.10B

–$2.76B

YoY Growth

–9%



Metric

Q1 2025

Q4 2024

Change

EPS

$0.27

$0.73

–$0.46

Revenue

$19.34B

$25.7B

–$6.36B

YoY Growth

–9%

N/A

N/A

🔮 Forward Guidance

  • EPS (Next Quarter/Full Year): No updated guidance; management cited evolving trade policy risks

  • Revenue Outlook: Management refrained from providing specifics

  • Notables: Continued investment in AI/robotics; affordable EV model remains on track for early 2025

🎯 Analyst Q&A – What the Street Is Probing

Analysts focused on understanding the underlying causes of the earnings miss and the company’s strategic responses.

Focus Areas:

  • Declining automotive margins and reduced deliveries

  • Tariff impacts on battery supply chain costs

  • Product rollout timelines (robotaxi, low-cost EV)

Recurring Questions:

  • How is Tesla addressing tariff-related cost pressures?

  • What’s the plan to stabilize vehicle margins and volumes?

  • Can energy storage continue to offset auto weakness?


🧭 Strategic Tailwinds & Headwinds

Tailwinds:

  • Energy storage revenue up 67% YoY

  • Continued progress in autonomous driving tech

Headwinds:

  • 20% decline in auto revenue

  • Tariff risk on imported battery components

  • Ongoing PR headwinds linked to CEO controversies


📌 Final Notes

Tesla’s (TSLA) Q1 shows a company caught in a squeeze — margin compression, softening demand, and rising geopolitical friction. While energy and AI segments offer some optimism, the core automotive narrative is under pressure. For now, this isn’t the story of a momentum stock; it’s a macro play on resilience through diversification.

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