Tesla (TSLA) underwhelmed Wall Street with its Q1 2025 earnings, falling short on both revenue and profit. Still, investors seemed more focused on CEO Elon Musk’s renewed commitment to the company. Following news that he’ll step back from his role at the Department of Government Efficiency (DOGE), Tesla stock jumped over 5% in after-hours trading.
Here’s a snapshot of the financials:
- Revenue: $19.34B vs. $21.43B expected
- EPS (adjusted): $0.27 vs. $0.44 expected
- Gross Margin: 16.3% (better than the expected 16.1%)
- Automotive GM (ex-regulatory credits): 12.5%
Despite the shortfall, Musk reassured investors that new affordable EVs are still expected in the first half of 2025, with Robotaxi production on track for 2026.
What’s Dragging Tesla Down?
- Trade policy uncertainty, especially around tariffs, is clouding Tesla’s global prospects.
- Increased EV competition, particularly from China and legacy automakers.
- A perception that Musk has been distracted from Tesla, fueling concern among shareholders.
Musk’s Time Reallocation: Back to the Driver’s Seat?
In the earnings call, Musk revealed he’d significantly reduce time spent at DOGE starting May. He plans to refocus efforts on Tesla, signaling to investors that he’s taking the wheel again during a critical time.
“I’ll still spend a day or two a week at DOGE,” Musk noted, “but Tesla will get the majority of my time.”
What’s Next?
Tesla removed its long-term growth forecast and said it would revisit 2025 guidance in Q2. While some of the low-cost EV plans may face delays, Musk & Co. are still emphasizing affordability and new models.
This earnings miss might’ve dented Tesla’s image, but Musk’s promise to “be present” again is the real driver behind the stock’s pop. In a time when investors are increasingly skeptical of side-project billionaires, Musk’s return to Tesla could be just the jolt the company needs.
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Image: By Justin Pacheco – https://www.dvidshub.net/image/7132409/usafa-hosts-elon-musk, Public Domain, Link
