Tesla missed estimates last quarter, with revenue and gross profit plummeting as deliveries fell.
Its total revenues were US$22.50 billion, dropping 12% year-over-year and below LSEG estimates of $22.74 billion. Adjusted earnings per share were $0.40, down 23% and missing estimates of $0.43.
“We continue to make progress preparing for the launch of additional models this year. Our entire model lineup is better than ever with recent updates,” wrote Tesla. “Our ongoing focus on supply chain robustness has enabled a resilient vehicle capacity base despite trade and policy uncertainties.”
Automotive revenue fell 16% year-over-year, while energy generation and storage revenue was down 7%. Only its services and other revenue segments reported revenue growth, rising 17% to US$3.05 billion.
Its total gross profit was US$3.88 billion, dropping by 15% year-over-year. Operating income was $0.92 million, down 42%.
Tesla delivered 384,122 units last quarter, falling by 13%. Deliveries increased during 2024 but have fallen sharply in 2025, driven partly by backlash against Tesla CEO Elon Musk’s alliance with U.S. President Donald Trump.
Its overall vehicle production numbers were roughly stable at 410,244, though production for its vehicles other than Model 3 and Model Y dropped by 45%.
The company launched its first driverless robotaxis last quarter, after Musk said he would return his focus to Tesla following his departure as a special government employee and a feud with Trump. The National Highway Traffic Safety Administration began an investigation into these taxis two days later, due to videos of the vehicles speeding and driving in the wrong lane.
An Electric Vehicle Intelligence Report survey found 31% of respondents were not interested in using a Tesla robotaxi, with 65% saying they had not heard about the robotaxis’ launch.
Tesla did not offer full guidance for the year. “It is difficult to measure the impacts of shifting global trade and fiscal policies on the automotive and energy supply chains, our cost structure, and demand for durable goods and related services,” the company wrote.
The U.S.’ tariff policies and its repeal of an electric vehicle tax credit is likely to impact Tesla’s near-term outlook, said CFO Vaibhav Taneja on an earnings call. The company will have a limited supply of U.S. vehicles this quarter as it reconfigures its supply chains, said Taneja, and its planned low-cost model will not ramp up production until next quarter.
Tesla’s (NASDAQ: TSLA) share price has fallen by more than 12% across 2025 to date. It closed at US$332.56, before dropping to $317.00 in after-hours trading. Its market capitalisation is $1.04 trillion.
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