EV maker Tesla’s first-quarter earnings didn’t meet Wall Street expectations. Analysts predicted the company’s earnings would be flat on a year-over-year basis, but the company’s revenues were down 9%, and its adjusted earnings slid 17%.
Tesla earnings fell short of Wall Street’s expectations, with automotive revenue down 20%.
The company’s automotive operations lie at the heart of the decline in the results with automotive revenues down 20% compared to the year-ago period. Tesla reported revenue of $19.3 billion for the quarter with its adjusted EBITDA coming in at $2.8 billion. Net income was $409 million, which was down 71%.
“Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,” the company wrote to shareholders.
Tesla officials warn the picture for doesn’t look like it will improve anytime soon, but they plan to stay the course.
“This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term,” the company wrote.
“We remain committed to expanding our business model to include delivering autonomous robots across multiple form factors and use cases — powered by our real-world AI expertise — to our customers and for use in our factories as we navigate these headwinds.”
While President Donald Trump reportedly bought a Tesla Model S, the company’s Q1 deliveries fell year-over-year.
Tough times ahead
Tesla officials warn the picture for doesn’t look like it will improve anytime soon, but they plan to stay the course.
“This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term,” the company wrote.
“We remain committed to expanding our business model to include delivering autonomous robots across multiple form factors and use cases — powered by our real-world AI expertise — to our customers and for use in our factories as we navigate these headwinds.”
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Tougher competition
One area officials didn’t mention in their shareholder deck was the intensifying level of competition the EV maker faces.
Tesla officials said it would continue to focus on the development of its autonomous robots as it looked to improve its vehicle sales results.
Tesla produced about 70,000 fewer vehicles in Q1 2025 than in the same period last year: 362,615 compared with 433,371 vehicles. Deliveries also fell, although not as much, 336,681 versus 386,810 vehicles.
In the meantime, new EV sales rose 11.4% during the first quarter, according to Cox Automotive, including an 18.5% jump from February to March. Acura, Audi, Chevrolet, Honda, Porsche and other manufacturers rolled out new offerings during the first quarter of the year.
And while Tesla saw sales decline last month, the company is still the market leader by a wide margin, and its new version of its best-selling Model Y is now in full production.
Tesla’s market share fell by 5 percentage points to 42%, although the Model Y and Model 3 remained the top-selling vehicles. It was a strong month for Chevrolet, Hyundai, Genesis and Cadillac, with each brand experiencing a month-over-month volume increase of 50% or more.
The top five selling new EV models, ranked by sales volume, were the Tesla Model Y, Tesla Model 3, Ford Mustang Mach-E, Chevrolet Equinox and Hyundai Ioniq 5. With over 70 models available, competition in the EV market is fierce, Cox analysts noted.
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