Tesla's earnings missed estimates, but plans for Robotaxi program are on track

From Nasdaq: 2025-04-22 17:39:00

Tesla reported disappointing first-quarter earnings, with an EPS of $0.27 missing estimates and revenue of $19.3B falling short of expectations. Despite challenges like tariff concerns and a slowing EV market, Tesla’s gross margin remained steady at 16.3%. The market’s muted reaction suggests pessimism was already priced in.

Tesla plans to revisit guidance in Q2 amidst global tariff chaos and uncertainty in China. The company typically provides vague guidance and suspension usually leads to a bearish reaction. However, investors may give Tesla leeway given the current circumstances.

Tesla remains on track to launch its Robotaxi pilot program in Austin, Texas this summer, a potential game-changer in the autonomous ride-hailing market. Despite concerns about delays, Tesla’s progress is a relief for bulls eagerly awaiting this development.

Tesla’s gross margins for Q1 were consistent with Q4, a surprising development amidst challenges faced by the company. Additionally, Tesla announced plans to work on new vehicle models in the first half of 2025, including a highly anticipated affordable model.

Tesla’s energy storage business saw significant growth in Q1, expanding by 67% year-over-year. This segment has been a consistent and strong performer for Tesla, contributing positively to the overall business performance.

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Read more at Nasdaq: TSLA Earnings: Revs & EPS Fall Short, Robotaxi Plans Proceed