Tesla Q1 earnings miss and Musk unveils 2025 budget EV plans
Tesla reported first‑quarter revenue of $1.3 billion and adjusted earnings of $0.20 per share, both below forecasts, while CEO Elon Musk announced plans for low‑cost electric vehicles and expanded robotaxi production.
Key points
- Q1 revenue fell to $1.3 billion, missing estimates by more than $2 billion.
- Adjusted earnings were $0.20 per share, below the $0.44 forecast.
- Vehicle deliveries dropped 13% year over year to 68,000 units.
- Musk said Tesla will launch budget‑friendly EVs by early 2025 and scale robotaxi production.
- Operating income fell 66% to $0.4 billion as margins were hit by price cuts and higher R&D spending.
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.
Your questions, answered
What were Tesla's first‑quarter earnings results?
Tesla posted $1.3 billion in revenue and $0.20 adjusted earnings per share, both below analysts' expectations.
What new vehicle plans did Elon Musk announce?
Musk said Tesla will introduce budget‑friendly electric vehicles by early 2025 and increase robotaxi production.
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