FREMONT, CALIFORNIA – Tesla is set to report its first-quarter earnings after the closing bell on Tuesday. With shares of the electric-vehicle maker down 44% year-to-date through Tuesday, investors are eagerly anticipating key details on self-driving initiatives and robotaxis. Wall Street is leaning bearish heading into the results as uncertainty surrounds CEO Elon Musk’s involvement with the US government.
During the earnings call, investors will be listening for updates on margins, the Cybertruck, a more affordable Tesla model, and other crucial developments. Tesla’s stock performance has been lagging behind the S&P 500, with a significant year-to-date loss of 44%.
Tesla has faced challenges with its Cybertruck production, scaling back targets due to decreasing demand. The March recall filing revealed that the company has delivered fewer than 50,000 Cybertrucks, highlighting the shift in consumer interest since its launch in 2023. The once-hyped vehicle has become polarizing in the market.
As Tesla prepares for its earnings release and company update, speculation is high about potential new announcements. Analysts are closely watching for updates on Elon Musk’s involvement with DOGE, a possible cyber taxi network rollout, and the timeline for a more affordable Tesla.
Wedbush analyst Dan Ives has labeled the situation as a “Code Red” for Elon Musk, emphasizing the need for the CEO to prioritize Tesla amid distractions. Ives is looking for specific announcements during the earnings call, such as details on the company’s growth strategy and upcoming products.
JPMorgan has revised its earnings estimates for Tesla following weak first-quarter delivery results. The bank anticipates a downward trend in Tesla sales, prompting a revision of their estimates for the company’s performance in 2025.
With expectations for the first-quarter earnings including an adjusted EPS estimate of $0.44, investors are keen to see how Tesla will navigate the challenges ahead. The company’s strategic decisions and financial performance in the coming months will be crucial in determining its trajectory in the competitive EV market.
