Tesla's Key Financial Indicators Fall Short of Expectations, Re-Evaluating 2025 Growth Forecast

Jinse reports that Tesla (TSLA.O) slightly omitted its sales growth expectations for 2025 in its earnings report released on Tuesday local time, and promised to reassess the outlook next quarter. This indicates that tariff policies, an aging product line, and public backlash caused by CEO Elon Musk are impacting the electric car manufacturer. The report shows Tesla's Q1 2025 revenue at $19.335 billion, with an adjusted earnings per share of $0.27, both of which are below analysts' average expectations. However, its gross profit margin exceeded the market average expectation of 15.82%, reaching 16.3%. The higher-than-expected gross margin relieved investors as Tesla is conducting promotions amid intensifying competition. Tesla did not reiterate its previous forecast for a recovery in full-year sales growth, instead stating it is "making prudent investments to lay the foundation for the growth of the automotive business." This will depend on capacity expansion and factors such as the "broader macroeconomic environment." "The impact of global trade policy changes on the automotive and energy supply chain, our cost structure, and demand for durable goods and related services is difficult to measure," Tesla stated.