First Quarter Results Fall Short of Market Expectations
"Trade Policies Negatively Impact Supply Chains and Cost Structures"
U.S. electric vehicle company Tesla reported first-quarter results that fell short of market expectations this year. Following the earnings announcement, Tesla's stock price showed slight gains in after-hours trading.
On April 22 (local time), Tesla announced in its earnings report released after the market closed that its revenue for January to March 2025 was $19.34 billion, with net income of $409 million. These figures represent decreases of 9% and 71%, respectively, compared to one year ago. Adjusted earnings per share (EPS) came in at $0.27, down 40% from the previous year.
All of these results fell short of Wall Street expectations. Previously, market research firm LSEG had projected Tesla's revenue for the quarter at $21.11 billion and adjusted EPS at $0.39.
Tesla's automotive revenue was reported at $14 billion, a 20% decrease from the same period last year.
Tesla explained that the weak performance was due to the global restructuring of its factory operations to support production of the new version of its flagship Model Y. The company also stated that declines in average selling price (ASP) and sales incentives negatively affected both revenue and net income.
In the market, there is also a view that negative sentiment toward Tesla CEO Elon Musk?who is known as "First Buddy" of President Donald Trump?may have contributed to the sales slump.
Tesla stated that it will revise its growth outlook for this year when it announces second-quarter results.
The company also made it clear that President Donald Trump's tariff policies are expected to have a negative impact on future performance.
Tesla said, "Rapidly changing trade policies are negatively affecting the global supply chains and cost structures of Tesla and its competitors, and uncertainty in the automotive and energy markets continues to grow. Such dynamic and shifting political sentiment could have a significant short-term impact on product demand."
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