Tesla published Tuesday its first quarter earnings results reporting a 15% decline in gross profit to $3.15 billion while automotive revenue fell 20% year over year to $13.97 billion.
The company reported Q1 EPS of $0.27, $0.15 below the analyst estimate of $0.42.
Tesla delivered 336,681 vehicles in the first quarter, 11% below Wall Street expectations of about 377,000 units while the company’s production reached 362,615 vehicles
Over the last few days, Tesla has faced multiple price target cuts from major Wall Street analysts, received inquiries from eight U.S. state treasurers regarding Musk’s focus, and been the subject of media reports about production delays affecting both the Cybercab and the affordable model.
Tesla shares jumped 4.7% higher on Tuesday, closing at $238. Immediately after the results were reported, the stock is trading nearly 1% lower.
Sales Guidance
Late last year, Elon Musk said he expected Tesla’s sales to grow by ‘20–30%’ in 2025 — a target the company revised during its late-January earnings call to a more modest ‘return to growth’ outlook.
In the new shareholder deck, the company stated the “shifting global trade policy on the automotive and energy supply chains” raise impacts which are difficult to measure.
“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 stated.
“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. We will revisit our 2025 guidance in our Q2 update,” the company added.
Earlier this Tuesday, Bank of America lowered Tesla’s price target by almost 20% to $305. Based on Monday’s closing price of $227, the new price target implies an upside potential of 34% on the stock.
Ahead of the report, a letter from eight state treasurers was released, raising growing concerns about Tesla‘s performance and Elon Musk’s dedication while holding a “high-profile advisory role” in the federal government.
The financial officers questioned the board’s oversight of Musk’s compensation plan and the company’s overall strategic direction.
