Q1 2025 Financial Performance:
- Revenue is projected to remain flat at $21.34 billion.
- Earnings per share (EPS) are expected to decline by 9% to $0.41.
- Analyst consensus for Q1 performance has dropped by over 40% since the end of 2024.
Key Highlights and Investor Focus:
- Robotaxi & Cybercab:
- Elon Musk has promised the launch of a paid robotaxi service in Austin by June 2025.
- The Cybercab, a steering-wheel-free vehicle, has been introduced but still depends heavily on the progress of full self-driving (FSD) technology.
- Production faces potential delays due to Trump’s new import tariffs on Chinese goods, which have risen to as much as 145%.
- Affordable EV Model:
- Tesla has scrapped plans for a “next-gen” EV and is now focusing on a low-cost model based on the current production line.
- Production is delayed by at least three months, with a potential launch by late 2025 or 2026.
- The model is expected to be a cheaper version of the Model Y.
- Declining Sales & Brand Image:
- Q1 vehicle deliveries fell 13% year-over-year and 32% from Q4, totaling 336,681 units.
- Sales of Model S, X, and Cybertruck accounted for just 12,881 units.
- A recent poll shows 67% of Americans are unlikely to consider purchasing a Tesla, with 37% citing Elon Musk as the primary reason.
- Impact of Trump Tariffs:
- Tesla is affected by new tariffs on Chinese components, including batteries.
- Production of Cybercab and the Semi truck could be disrupted.
- Elon Musk’s Role in the Trump Administration:
- Musk currently leads the Department of Government Efficiency (DOGE).
- There is growing pressure for Musk to resign from the government role and refocus on Tesla.
- Analysts believe his political involvement is damaging Tesla’s brand, particularly in the U.S. and Europe.
Conclusion:
While Tesla’s upcoming earnings report may fall short of expectations, investors are primarily focused on:
- Clarity regarding the launch of the robotaxi service.
- Progress on the development of an affordable EV.
- The impact of Trump’s tariffs on Tesla’s supply chain.
- Elon Musk’s level of commitment to Tesla versus his government role.
Earning Projection Prediction
WHAT THE ANALYST STATED
