Tesla reports 20% drop in auto revenue as first-quarter results miss Wall Street estimates

Tesla reported a miss on the highest and backside strains in its first-quarter earnings report on Tuesday as automotive revenue plunged 20% from a 12 months earlier.

Listed below are the important thing numbers in contrast with LSEG expectations.

• Earnings per share: 27 cents adjusted vs. 39 cents estimated
• Revenue: $19.34 billion vs. $21.11 billion estimated

Whole revenue slid 9% from $21.3 billion a 12 months earlier. Automotive revenue dropped 20% to $14 billion from $17.4 billion in the identical interval final 12 months.

Tesla stated one cause for the decline was the necessity to replace strains at its 4 automobile factories to start out making a refreshed model of its well-liked Mannequin Y SUV. The corporate additionally pointed to decrease common promoting costs and gross sales incentives as a drag on revenue and revenue.

Internet earnings plummeted 71% to $409 million, or 12 cents a share, from $1.39 billion or 41 cents a 12 months in the past.

It has been a brutal begin to the 12 months for Tesla, with CEO Elon Musk spending a lot of his time in President Donald Trump’s White Home, overseeing an effort to dramatically downsize the federal authorities. The president’s sweeping tariffs plan has led to considerations that prices will enhance for elements and supplies essential for electrical automobile manufacturing, together with manufacturing gear, automotive glass, printed circuit boards and battery cells.

Tesla shares are down 41% up to now in 2025, and suffered their worst quarterly drop since 2022 in the interval that ended in March. The inventory was little modified in prolonged buying and selling on Tuesday.

In its shareholder deck, Tesla cautioned traders that “uncertainty in the automotive and vitality markets continues to extend as quickly evolving commerce coverage adversely impacts the worldwide provide chain and value construction of Tesla and our friends.” The corporate stated this “dynamic,” and “altering political sentiment” might have a significant near-term affect on demand for its merchandise.

Earlier this month, Tesla reported a 13% decline in deliveries to 336,681. Tesla blamed the decrease deliveries, in half, on the necessity to droop manufacturing quickly at its factories whereas it upgraded strains to start out manufacturing a refreshed model of its well-liked Mannequin Y electrical SUVs.

That is breaking information. Please verify again for updates.

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