Charles EstherTesla is set to announce its first-quarter earnings for 2025 today, April 22, after the market closes.
The company update and investor call are scheduled for 5:30 p.m. ET, and expectations are already running high due to a tumultuous start to the year.
With vehicle deliveries down, investor confidence shaken, and regulatory pressure growing, this earnings call could prove to be a turning point for the electric vehicle (EV) giant.
Vehicle Deliveries Hit a Two-Year Low
Tesla delivered 336,681 vehicles in Q1 2025, marking a 13% decline year-over-year.
This figure also fell short of analysts’ expectations, which hovered around 380,000.
It is Tesla’s worst quarterly performance since early 2023, raising concerns about weakening demand and intensifying competition.
Flat revenue projections of approximately $21.3 billion indicate stagnant growth compared to the same period last year.
EPS Decline Signals Deeper Struggles
Wall Street expects Tesla’s earnings per share (EPS) to come in at $0.41, a drop from $0.45 in Q1 2024.
This reflects more than just a dip in sales—it highlights increased operational costs, slower adoption in key markets, and a weakened brand image.
Brand Damage from Musk’s Political Ties
One of the most pressing concerns for investors is CEO Elon Musk’s growing political involvement.
His public alignment with Donald Trump’s 2024 campaign has sparked controversy and protest, particularly in progressive strongholds like California and overseas in China.
Analysts, including those at JPMorgan, have warned that Musk’s actions are causing “unprecedented brand damage,” which could directly affect Tesla’s long-term profitability.
Tesla’s stock has fallen over 40% year-to-date.
Affordable EVs Remain Elusive
While investors are hungry for details on a new low-cost Tesla model, the company has reportedly scrapped plans to launch a completely new affordable vehicle.
Instead, Tesla may introduce less expensive variants of existing models like the Model Y.
Unfortunately, production delays have clouded the timeline, and no firm announcements have been made about pricing or release dates.
Robotaxi Service in Focus
Tesla is pushing forward with its vision for autonomous vehicles, planning to launch a robotaxi service in Austin, Texas, by June 2025.
However, industry experts remain sceptical due to ongoing regulatory and safety challenges.
The Q1 earnings call may shed light on Tesla’s strategy for overcoming these hurdles.
Energy Business Offers a Bright Spot
Not all of Tesla’s segments are struggling.
The company deployed 10.4 GWh of energy storage in Q1 2025, highlighting growth in its energy division.
This segment could become a vital revenue stream as vehicle sales slow and infrastructure needs rise globally.
Global Sales Hampered by Tariffs
Tesla’s international performance is also under pressure.
Ongoing tariff disputes between the U.S. and China have already led to a halt in Chinese orders for Tesla’s Model S and Model X.
This trade tension could threaten one of Tesla’s most crucial markets and impact future revenue potential.
What Analysts Are Saying
Investor sentiment is mixed.
JPMorgan recently cut its Q1 EPS estimate from $0.40 to $0.36 and maintained a bearish “underweight” rating on Tesla, with a $120 price target for December 2025.
Other analysts are calling this a “make-or-break” quarter.
Tesla’s ability to reassure shareholders and articulate a viable path forward will be essential.
Looking Ahead to the Earnings Call
Today’s earnings call will provide insights into how Tesla plans to address the issues plaguing its business—from delivery declines to reputational damage.
With so much riding on this report, all eyes will be on Elon Musk and his executive team to deliver answers—and a roadmap to recovery.
Final Thoughts
Tesla remains a powerful name in the EV and energy space, but 2025 is shaping up to be one of its most difficult years.
How the company navigates the storm—beginning with this earnings report—will determine whether it regains investor trust or continues on a rocky path.
