Every Tesla Investor Should Keep an Eye on This Number

Core Insights - Tesla's vehicle sales dropped for the first time since mass production began, with a 53% decline in net income for 2024 compared to 2023 [1] - The decline in sales is attributed to slowing demand for EVs and increased competition, leading to a price war that reduced profit margins and earnings [1][4] - The stock has fallen approximately 30% in 2025, raising questions about whether this presents a buying opportunity or if the downward trend will persist [2] Sales and Deliveries - Tesla's first-quarter deliveries declined by 13% year over year, while production decreased by 16.3% [4] - In the previous quarter, Tesla's deliveries had increased by 2% year over year, but automotive revenue fell by 8% and operating income dropped by 23% [5] Operating Performance - Operating margin has been declining, with a drop of 204 basis points (approximately 2 percentage points) noted [5] - Operating income is considered the best measure of Tesla's core business, excluding revenue from regulatory credits [7] - Investors are advised to monitor the operating margin closely in the upcoming financial report, as further declines could indicate more downside for the stock [8]