Tesla’s Q1 2025 earnings call is scheduled for tomorrow, and the American EV maker will undoubtedly have to answer some tough questions. Here is what you can expect when the company’s top executives discuss the Q1 financial results.
Tesla missed performance estimates in the first three months of 2025. The automaker reported 336,681 deliveries, less than 377,000 units expected on Wall Street. It was down 13 percent compared to the same period last year.
As a result, many analysts have predicted underwhelming numbers to come out of the investors’ call. For example, FactSet analysts project a nine percent profit decline on sales of $21.34 billion.
Ahead of the call, Tesla’s shares dipped 7.4 percent on Monday to 223.61, compounding the 4.3 percent loss recorded at the end of last week’s trading.
Anxious investors will be keen to hear Tesla’s answers to the following key questions:
Impact of Trump’s tariff on Tesla business for the rest of the year
It doesn’t help that Tesla CEO Elon Musk is a prominent member of President Donald Trump’s government, which is imposing import tariffs from basically every country. While Tesla is among the automakers least affected by the new trade policy, Musk has warned his company would not be unscathed. Tesla depends on materials from outside the US to produce its components. The billionaire and his top executives will need to provide concrete plans for mitigating the imminent increase in production costs.
Musk’s future with government work
Musk has been called the president’s first buddy. However, this comes at a price, as the world’s richest man is tasked with overseeing the Department of Government Efficiency (DOGE), which aims to slash trillions from the federal government’s operating expenses. The mammoth portfolio is time-consuming, and investors want to know how long Musk will work on the project.
Another important aspect is the effect of Musk’s government work on the Tesla brand. The company has been facing protests within and outside the US from people angry with the CEO, some of which have turned violent. Musk will have to articulate how he will protect Tesla from the backlash from his government involvement.
Plan to turn around global sales slump
Tesla is facing increasing pressure from competition globally, but especially in China, which is manifesting in declining sales. While Tesla is preparing to launch the Cybertruck in the Middle East and officially enter the Indian market, investors will need more reassurances on how it will be steered back to growth.
Product launches
Tesla will be asked what products it will launch in the rest of 2025. Last year, the company promised new electric vehicles this summer, although those may now be delayed until later this year, and Musk insists the autonomous Robotaxi service will launch in June. Investors are eager for updates on Tesla’s latest offerings.
