Tesla Earnings: Elon Musk’s Firm Reports Worst Quarterly Profit Since 2021
Key Facts
The automaker released its first-quarter results shortly after 4 p.m. EDT’s market close, reporting adjusted $0.27 earnings per share and $19.3 billion revenue.
Average estimates called for Tesla to report $21.3 billion in revenue and $0.41 EPS last quarter, according to FactSet.
That makes Q1 2025 Tesla’s worst quarter by sales since Q2 2022 and its least profitable period since Q1 2021.
Revenue in Tesla’s core automotive business plunged 20% year-over-year, declining to $14 billion, the weakest sum since Q3 2021.
Tesla brought in $595 million of automotive regulatory credits last quarter compared to a $400 million overall operating profit, meaning Tesla was in the red to start 2025 when excluding the credits, which are all essentially free profit Tesla receives from its gas car rivals looking to comply with emission requirements.
Tuesday’s report follows Tesla’s far weaker than expected Q1 vehicle deliveries out earlier this month which signaled its financials may also leave room for improvement, as the company delivered 337,000 vehicles during the quarter, its worst vehicle delivery growth since 2022 and coming in 17% below consensus analyst delivery forecasts.
When Is Tesla’s Earnings Call?
The company will livestream its earnings call at 5:30 p.m. on its investor relations website.
What To Watch For
If Musk addresses his timeline for departing the White House during the call. Musk is a senior advisor to Trump and the head of the influential Department of Government Efficiency, having donated $288 million to Trump’s 2024 election efforts. Wedbush analyst Dan Ives wrote Sunday he expects “Musk to address his role in the Trump administration” on the call, and “if Musk chooses to stay with the Trump White House, it could change the future of Tesla” as “brand damage will grow.”
Tesla Stock Rebounded Ahead Of Earnings
“We struggle to think of anything analogous in the history of the automotive industry, in which a brand has lost so much value so quickly,” JPMorgan analyst Ryan Brinkman remarked in a note last month. Musk’s powerful role in Washington brought a slew of controversy, culminating in boycotts of Tesla vehicles, protests and vandalism of the vehicles. JPMorgan’s $120 price target for Tesla indicates the U.S.’ largest bank believes shares can decline almost 50% from its $238 share price Tuesday.
Tesla Stock Rebounded Ahead Of Earnings
Shares of the electric and autonomous vehicle firm rose 5% Tuesday morning amid a broader market recovery, clawing back much of the Austin-based company’s Monday losses. Tesla stock is still down more than 40% from its last earnings report in January. How the stock performs following Q1 results will be “dictated” by Tesla’s ability to explain profit margins worse than Volkswagen’s, confidence in progress on driverless taxi offerings and a “sense of increased attention from their CEO,” predicted Jonas.
Forbes Valuation
Musk is worth $361 billion according to our latest estimates, making him by far the richest person on the planet, though he is more than $100 billion poorer than he was at his December peak.
Chief Critic
“We struggle to think of anything analogous in the history of the automotive industry, in which a brand has lost so much value so quickly,” JPMorgan analyst Ryan Brinkman remarked in a note last month. Musk’s powerful role in Washington brought a slew of controversy, culminating in boycotts of Tesla vehicles, protests and vandalism of the vehicles. JPMorgan’s $120 price target for Tesla indicates the U.S.’ largest bank believes shares can decline almost 50% from its $237 share price Tuesday.
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