The upcoming Tesla earnings report is highly anticipated, largely due to recent challenges faced by the company. Tesla has encountered several obstacles this year as its CEO, Elon Musk, has become increasingly involved in right-wing politics and taken on a role in DOGE, an advisory body empowered by President Trump to make significant cuts to federal spending.
These developments have adversely affected Tesla, contributing to a decline in both its stock price and global sales. Moreover, competitive pressures from companies in China, Europe, and North America have further compounded these issues. Adam Jonas, a Morgan Stanley analyst and Tesla supporter, indicated that this quarter’s margin expectations are the lowest for Tesla in 12 years. The company’s stock performance will likely hinge on its ability to explain why its profit margins lag behind Volkswagen’s, address potential cash flow issues, restore confidence in its autonomy strategies, and refocus Musk’s attention away from political engagements.
According to analysts surveyed by Yahoo Finance, Tesla’s revenue is expected to be approximately $21.41 billion, which would be consistent with last year’s figures but a decrease from the $25.7 billion reported in Q4 2024. Tesla’s Q1 2025 earnings call is scheduled for 2:30 p.m. PT / 5:30 p.m. ET.
Key points of interest during the earnings call include updates on Tesla’s electric vehicle (EV) sales guidance, particularly after a challenging start to 2025 with only 336,681 deliveries—the lowest quarterly performance in over two years. Despite obstacles, Tesla is somewhat insulated from potential impacts of new tariffs due to its domestic sourcing and vertical integration. However, Musk’s political affiliations may affect the company’s popularity in China, opening opportunities for competitors like BYD.
Another area of interest is Tesla’s plans regarding a cheaper EV model, with reports indicating either abandonment or delays in its rollout. Additionally, stakeholders will listen for updates on the planned robotaxi service in Austin, as Tesla has yet to detail the commercialization of this segment or disclose specific routes and territories.
Information on Cybercab production is also anticipated, though regulatory challenges remain for approval of autonomous vehicles without human control features. Updates on Tesla’s use and production of Optimus humanoid robots, as initially planned for internal tasks, are expected as well.
Further insights into Tesla’s AI and computing endeavors, specifically the Dojo and Cortex supercomputers, are awaited. The company’s last significant communication about these initiatives was limited, leaving analysts eager for more detailed updates.
Investors are particularly attentive to any indication that Musk will reprioritize Tesla’s business interests over political engagements. This was highlighted in notes from analysts like Dan Ives of Wedbush, emphasizing the need for Musk to detach from politically charged associations to safeguard Tesla’s brand.
