Tesla’s Q1 Earnings Miss Estimates

Tesla (TSLA) on Tuesday reported first-quarter results that missed analysts’ expectations, with automotive revenue dropping dramatically.

The electric vehicle maker reported adjusted earnings of $0.27 per share on revenue of $19.34 billion, down from earnings of $0.45 per share on $21.3 billion in revenue a year ago, well below analysts’ forecasts compiled by Visible Alpha. (Investopedia’s live coverage of the results is here.)

Tesla’s auto revenues, which make up most of the company’s sales, fell 20% year-over-year, weighed down both by lower volume and sagging average sales prices.

“Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,” the company said in Tuesday’s release. “This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term.”

Tesla Says It’s Taking Action To ‘Stabilize the Business’

Tesla said the Trump administration’s current tariff plans could have a “relatively larger impact” on its renewable energy business compared to the automotive side, and that the company is “taking actions to stabilize the business in the medium to long-term and focus on maintaining its health.”

During Tesla’s earnings call, CEO Elon Musk said Tesla should be less affected by tariffs than most other automakers, as the EV maker has worked to diversify its supply chain and position its manufacturing so parts are often going to facilities “at least located on the same continent.”

Musk also said he’ll be “allocating far more of my time to Tesla” starting next month, amid concerns about a political backlash to his role in the Trump administration and calls to refocus his efforts on Tesla.

Tesla To Revisit Its Full-Year Outlook Next Quarter

Tesla didn’t offer a fresh outlook for the full year in its first-quarter earnings release, saying the company plans to do so when it reports second-quarter results.

“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” the company wrote. “We will revisit our 2025 guidance in our Q2 update.”

However, Musk said the company is making “good progress” on its Optimus humanoid robot, and that its plans for a lower-cost vehicle and fully self-driving vehicles remain on track.

Tesla shares climbed leading up to the company’s conference call and were up over 5% in extended trading following the call. They gained 4.6% in Tuesday’s regular session.

This article has been updated since it was first published to include additional information and reflect more recent share price values.