Tesla earnings updates: Investors seek details on brand damage, lower-cost model – Business Insider
2025-04-22T16:23:00Z
Tesla’s earnings call is today at 5:30 pm ET. TSLA stock heads into the report down 44% YTD. Analysts are focused on margins and brand damage.
Tesla reported quarterly earnings that missed Wall Street’s estimates on Tuesday, April 22. Elon Musk talked about upcoming launches, Trump’s tariffs, and more on a follow-up call with analysts.
Tesla reported quarterly earnings that missed Wall Street’s estimates on Tuesday, April 22. Elon Musk talked about upcoming launches, Trump’s tariffs, and more on a follow-up call with analysts. AP Photo/Jeff Chiu, File
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Key updates
Elon Musk gave many Tesla investors what they wanted on Tuesday: assurance he would pay more attention to the company.
Tesla reported its much-anticipated earnings for the first quarter after the closing bell, missing Wall Street’s estimates as it revealed details of its financial performance for the year so far.
The electric vehicle maker reported revenue of $19.34 billion, down 9% year over year, compared to forecasts of $21.43 billion. Auto revenues were down 20% year over year.
Tesla’s earnings per share, a measure of profitability, were $0.12 — down 71% year over year — versus analysts’ estimates of $0.33. The company also said it’s backing away from its 2025 “return to growth” forecast for its vehicles business.
Wall Street was leaning bearish heading into the results as uncertainty swirls around CEO Elon Musk’s involvement with the US government. Investors were looking for updates on margins, robotaxis, the Cybertruck, and a more affordable Tesla model — and they largely got them.
On the call, Musk announced that he planned to step back significantly from his DOGE work starting next month.
“Starting next month, I will be allocating far more of my time to Tesla, and now that the major work of establishing the Department of Government Efficiency is done,” Musk said. He said he’ll continue to spend a day or two per week on government matters, “as long as it is useful,” and President Trump wants him to.
Tesla’s stock rose higher in after-hours trading following the remarks.
Addressing declining delivery numbers in the first quarter, CFO Vaibhav Taneja pointed to assembly line changeover for the refreshed Model Y but also said that vandalism and anti-Tesla hostility “had an impact in certain markets.” Musk later said Tesla demand remains strong.
Tesla also gave updates on the coming paid robotaxi service launch in Austin, which the company said would start with 10 or 20 Model Y vehicles and remote operators involved to help in case any vehicles got stuck or with safety concerns.
The company didn’t show off its “more affordable” models that it says are on track to begin production in the first half of the year, but it said they will resemble the shape and form of Tesla’s existing product roadmap.
“Given economic uncertainty resulting from changing trade policy, more affordable options are as critical as ever,” Tesla said in its earnings release.
Musk also weighed in on Trump’s tariffs on the call with analysts, saying he had advocated to the president for lower tariffs and “made his opinion clear.” However, Trump is “within his rights” to do what he wants, Musk said, and the president talks to multiple advisers.
Wall Street appeared to like what it heard on the call. Tesla’s stock ended Tuesday’s session up 4% and was trading up over 5% after hours as the call concluded.
You can catch up on the play-by-play below:
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