Tesla (TSLA) reported disappointing Q1 earnings, missing both revenue and profit expectations — but investors found hope in CEO Elon Musk’s renewed focus on the company and reassurance that new vehicles are still on track for 2025.
Tesla posted $19.34B in revenue vs. $21.43B estimated, and EPS of $0.27 vs. $0.44 expected. Deliveries also fell short, marking the worst quarter since Q2 2022.
However, Musk announced he’ll be spending more time at Tesla starting in May, reducing his commitment to the Department of Government Efficiency (DOGE). Following the announcement, Tesla shares jumped 5% in after-hours trading, reaching $250.80.
Tesla confirmed it still expects to launch new affordable EVs in the first half of 2025 and begin Robotaxi production in 2026, despite global trade uncertainty and political volatility impacting the auto market.
Gross margin for the quarter was slightly better than expected at 16.3%, with automotive gross margin (excluding regulatory credits) at 12.5%. Still, the company warned it may revise 2025 guidance in its next earnings update.