Tesla Inc (NASDAQ:TSLA) has reported underwhelming financial results for the first quarter, as largely expected by investors following weak vehicle deliveries for the period.
Total revenue was down 9% year-over-year at $19.35 billion for Q1, compared to estimates of $21 billion.
Total automotive revenues fell 20% from the year-ago quarter to $14 billion, attributed to a decline in vehicle deliveries in part stemming from the model Y update across its factories and reduced vehicle average selling price due to mix and sales incentives.
Energy generation and storage revenue increased 67% to $2.73 billion, and services and other revenue was up 15% at $2.64 billion.
Earnings per share of $0.27 missed estimates of $0.44.
Tesla's operating margin fell by 343 basis points year-over-year to 2.1%.
The company said it remains on track for the pilot launch of its Robotaxi in Austin by June and builds of its humanoid robot Optimus on its Fremont pilot production line this year.
Further, new vehicles, including a more affordable EV, also remain on track to start production in the second half of 2025, Tesla said.
Tariff impact
In terms of the impact of new global tariffs on Tesla, the company said it will revisit its 2025 guidance in its second quarter update.
“It is difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains, our cost structure and demand for durable goods and related services,” the company said.
“While we are making prudent investments that will set up both our vehicle and energy businesses for growth, the rate of growth this year will depend on a variety of factors, including the rate of acceleration of our autonomy efforts, production ramp at our factories and the broader macroeconomic environment.”
Tesla’s earnings miss appears to have already been priced in going into its report, with investors focusing on the company’s strategic updates. The company's shares traded 0.2% lower at $237 afterhours.