Tesla Inc (NASDAQ:TSLA) will report its first quarter earnings after US markets close, with the electric vehicle maker expected to report declines in revenue and profits due to production challenges and softening demand.
The company is expected to report earnings per share of $0.43 on revenue of $21.81 billion, down from $0.74 and $27.2 billion for the fourth quarter of 2024.
Tesla reported its weakest quarterly delivery performance in three years for Q1, attributed to a combination of demand issues and production disruptions, notably the changeover to the new Model Y, which led to several weeks of lost output across all factories.
Deliveries of 336,681 were down 13% from the year-ago period and missed expectations of 360,000 to 390,000. Production of 362,615 marked a 16% year-over-year drop.
Shares of Tesla traded hands at $241 on Tuesday afternoon, having shed about 40% in the year to date due to investor concerns about the company’s production figures and brand damage due to CEO Elon Musk’s involvement with the Trump administration.
Wedbush analyst Dan Ives believes Tesla faces long-term damage unless Musk steps back from Trump administration.
“As one of the biggest supporters of Tesla over the last decade we have been through many highs and lows on the Tesla story and each time with the back against the wall Musk was able to turn things around on the Tesla story,” Ives wrote in a note.
“The turnaround vision must start this Tuesday night on the earnings conference call for Musk and Tesla.”
Ives wrote Musk needs to lay out for investors the timing and rollout of unsupervised full self driving this summer, provide an update on when its new lower-cost vehicle will hit the production line and how he plans to turn around the company after a “disastrous” first quarter.
He also said it was time for the CEO to lay out the “hard facts” around the autonomous and robotics rollout over the next six to 12 months.
- Updated with share price movement, Wedbush commentary -