Tesla Q1 2025 earnings preview: where Tesla might head next
Tesla faces significant headwinds as it prepares to announce Q1 2025, with analysts projecting declining revenue and EPS amid weakening EV demand and production challenges.
When is Tesla reporting?
Tesla is set to report its first-quarter 2025 (Q1) earnings on Wednesday, 23 April at 6.10am AEST, after market close.
Wall Street analysts and investors are closely watching this report as the electric vehicle (EV) giant navigates challenging market conditions and declining sales numbers. Here's everything you need to know ahead of Tesla's Q1 2025 earnings announcement.
What 'the Street' can expect
Q1 2025 expectations
- Revenue: approximately $21.81 billion
- Earnings per share (EPS): $0.43 for Q1 2025
Comparison to Q4 2024
- Revenue: $27.2 billion
- EPS: $0.74
Vehicle production and delivery challenges
Tesla's Q1 2025 has been marked by concerning production and delivery numbers:
- Production of 362,000 vehicles, down 16% year-over-year (YoY)
- Deliveries of 336,681 vehicles, down 13% (YoY)
- Weakest quarterly delivery performance in three years
- Numbers that fell short of analyst expectations
These figures signal a potential slowdown in Tesla's growth trajectory and have contributed to investor concerns about the company's near-term prospects.
Profit margins and cost management under scrutiny
One of the most critical metrics investors will be monitoring is Tesla's automotive gross margin. The company has been aggressively implementing cost-cutting measures to maintain profitability amid pricing pressures and increasing competition in the EV market.
Tesla has made significant progress in reducing the average cost of goods sold (COGS) per vehicle, lowering it from over $38,000 in early 2023 to below $35,000 by late 2024. The upcoming earnings report will reveal whether this cost reduction trend has continued into 2025, which is crucial for maintaining profitability despite lower sales volumes.
Energy business: Tesla's fastest-growing segment
While Tesla's automotive business faces headwinds, its energy segment represents a potential bright spot. Though it remains the smallest part of Tesla's business, the energy division has been the fastest-growing segment:
- Contributed approximately 10% of total revenue in 2024
- Experienced 67% YoY growth in 2024
- Could help offset declining automotive revenue
Investors will be looking for continued momentum in this high-margin business as a potential catalyst for Tesla's future growth.
What to watch for
Tesla's stock has experienced significant pressure in 2025, falling approximately 38% year-to-date amid broader market concerns about the EV sector. This decline reflects investor anxiety about:
- Slowing EV demand globally
- Increasing competition from both traditional automakers and new EV startups
- Production challenges and cost pressures
- Consumer backlash over certain cost-cutting measures
However, potential positive factors include recent tariff suspensions and possible regulatory support that could benefit Tesla in the coming quarters.
Tesla technical analysis
The share price of Tesla currently is moving within a range between the 214 support level and the 292 resistance level. Traders would in turn look to trade between these levels or wait for a new directional commitment from a breakout scenario.
A close above 292 would consider an upside breakout, with 355 the next upside resistance target. A close below the 214 level would suggest a downside breakout, with 184 the next support target.
Tesla daily chart
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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