Tesla Q1 Earnings Miss Expectations as Auto Revenue Drops 20%

Tesla Q1 Earnings Miss Expectations, Auto Revenue Falls 20%

Tesla (TSLA) reported weaker-than-expected first-quarter 2025 results on Tuesday, falling short on both earnings and revenue. The electric vehicle giant posted adjusted earnings of $0.27 per share on revenue of $19.34 billion, missing analyst estimates and dropping from $0.45 EPS and $21.3 billion in revenue a year earlier.

Automotive revenue, Tesla’s core segment, declined 20% year-over-year due to reduced delivery volume and falling average sales prices.

Tesla highlighted ongoing challenges, citing rising trade tensions and shifting political sentiment as key risks. “Evolving trade policy is disrupting supply chains and could impact demand,” the company said.

Despite the earnings miss, Tesla shares rose over 5% in after-hours trading, buoyed by confidence from CEO Elon Musk. On the earnings call, Musk noted Tesla’s diversified supply chain may help buffer the impact of tariffs more effectively than other automakers.

Tesla also stated it is taking steps to "stabilize the business" and protect long-term growth, especially in its renewable energy division, which it says could be more exposed to tariffs than the auto side.