Tesla's focus on affordable EV and robotaxis faces challenges, impacting sales and margins

From Yahoo Finance: 2025-04-21 06:04:00

Tesla investors eagerly await CEO Elon Musk’s answers on the affordable vehicle launch and robotaxi plan in the upcoming results report. The company’s hopes hinge on a cheaper car to boost sales, but production delays have been reported. Musk’s focus on robotaxis faces skepticism due to safety concerns and regulatory hurdles. Sales have slumped, impacting margins, prompting Tesla to offer incentives for sales. The company’s stock has dropped 40% this year, reflecting challenges in restoring the brand value amidst Musk’s political involvement. Analysts estimate flat revenue for the first quarter at $21.35 billion, supported by regulatory credits and solar energy systems. Tesla is expected to report a lower automotive gross margin of 11.83% due to rising incentives and discounts on Cybertrucks. Despite challenges, efforts to minimize brand damage and focus on self-driving technology are crucial for Tesla’s future success.



Read more at Yahoo Finance: Tesla’s affordable EV, robotaxis in focus after Musk backlash, competition hurt demand