Tesla is expected to report a decline in profit margins and earnings for the first quarter, as weaker-than-expected deliveries in the January–March period weigh on performance. The electric vehicle maker delivered around 337,000 units, missing estimates, with operating leverage also falling short.
Wells Fargo forecasts Q1 earnings per share at $0.34, well below the $0.42 consensus, and sees auto gross margin (excluding regulatory credits) declining to 12.8% from 13.6% in the previous quarter. The firm also cut its full-year 2025 EPS estimate by 16%, citing weaker demand for the refreshed Model Y and a projected 11% drop in deliveries.
Investor focus is now on potential updates regarding Tesla’s long-awaited low-cost Model 2, which could reinvigorate sales, though there has been no official timeline. Meanwhile, enthusiasm for the Cybertruck appears to be waning, and the company is reportedly shifting focus toward speculative ventures like the Cybercab and humanoid robot project Optimus — moves analysts’ view with skepticism.
Wall Street sentiment for 2025 has deteriorated, with many now projecting a second consecutive year of declining sales. Concerns are mounting over Tesla’s brand perception, which has been dented by CEO Elon Musk’s political activity, as well as broader economic uncertainty driven by the Trump administration’s tariffs.
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Tesla is set to release its Q1 2025 financial results on Tuesday, April 22, 2025, after the U.S. market closes.
The company will host a live webcast of its earnings call and “Company Update” at 4:30 p.m. Central Time (5:30 p.m. Eastern Time).
The webcast will be available on Tesla’s Investor Relations website at ir.tesla.com, with a replay accessible approximately two hours after the event.
This article was written by Eamonn Sheridan at www.forexlive.com.