Tesla’s first-quarter earnings fell short of expectations, with revenue dropping to $1.3 billion—missing estimates by over $2 billion—and adjusted EPS at $0.2, below the projected $0.44. Despite the miss, shares edged higher in after-hours trading as CEO Elon Musk confirmed plans to launch new budget-friendly EVs by early and scale robotaxi production in.
Deliveries slumped 13% year-over-year to,68 vehicles, driven by factory retooling for Model Y updates and geopolitical pressures. Operating income cratered 66% to $0.4 billion, with margins squeezed by price cuts and rising R&D costs for AI projects. Musk cited "rapidly evolving trade policies" and shifting political sentiment as near-term risks, with Tesla scrapping its long-term growth forecast.
The stock, down 40% year-to-date due to delivery misses and Musk’s controversial White House role, faces a pivotal moment: Traders expect an 11% swing post-earnings, echoing its volatile history. With $3 billion in cash reserves and energy storage deployments hitting.4 GWh, Tesla’s balancing act between innovation and external pressures remains high-stakes.
