Tesla faces challenges in Q1 with low car deliveries, negative sentiment towards CEO Elon Musk.

From Nasdaq: 2025-04-15 09:31:00

Tesla is gearing up to release its first-quarter 2025 results on April 22, with earnings and revenues estimated at 45 cents per share and $21.85 billion, respectively. The company faced challenges in the first quarter, delivering 336,681 cars, the lowest quarterly figure in over two years, due to retooling and negative sentiment towards CEO Elon Musk.

Despite a decline in automotive sales, Tesla is expected to see growth in energy generation and storage revenues, with a 156% year-over-year increase in energy storage deployment. However, discounts and incentives may impact automotive revenues and gross margins, with operating expenses expected to rise in 2025.

Analysts are not optimistic about Tesla’s earnings this season, with an Earnings ESP of -11.7% and a Zacks Rank #5 (Strong Sell). While Tesla’s outlook is uncertain, other players in the auto industry like QuantumScape and LKQ Corp. have a more favorable combination for potential earnings beats in the upcoming quarter.

QuantumScape, set to release its first-quarter results on April 23, and LKQ Corp., releasing on April 24, have Earnings ESP of +8.07% and +3.19% respectively, with Zacks Rank #3. BorgWarner, with results due on May 7, also shows promise with an Earnings ESP of +5.24% and a Zacks Rank #3. These companies have a history of surpassing earnings estimates in previous quarters.



Read more at Nasdaq: Tesla Q1 Earnings Likely to Disappoint Investors: Things to Note