Tesla earnings Q1 2025: What we're watching for

Core Viewpoint - Tesla is facing significant challenges, including declining stock prices and global sales, attributed to CEO Elon Musk's political involvement and increased competition in key markets [1][2]. Financial Performance - Analysts expect Tesla's revenue for the upcoming quarter to be approximately $21.41 billion, which represents no growth year-over-year and a decline from $25.7 billion in Q4 2024 [3]. - The company is anticipated to report the lowest margin expectations in 12 years, raising concerns about its profitability compared to competitors like Volkswagen [2]. Delivery and Demand - Tesla's Q1 2025 delivery numbers were disappointing, with only 336,681 vehicles delivered, marking the worst quarterly performance in over two years [4]. - There are concerns about weak customer demand, partly influenced by Musk's political stance [4]. Strategic Initiatives - Tesla has reportedly abandoned plans for a low-cost electric vehicle, although some sources suggest the rollout has merely been delayed [6]. - The company plans to launch a paid ride-hailing robotaxi service in Austin, with initial operations expected to use Model Y and Model 3 vehicles [7][8]. Production and Technology - Updates on the production timeline for the Cybercab, which lacks federal approval for mass production of autonomous vehicles without human controls, are anticipated [9]. - The company is expected to provide insights into the use of Optimus humanoid robots for internal tasks and the timeline for high-volume production [10]. AI Developments - There has been little communication regarding the Dojo supercomputer, while updates on the Cortex AI training supercluster have been shared [11][12]. Leadership and Focus - Investors are looking for indications that Musk will prioritize Tesla's core business over his political engagements, as analysts express concerns about the impact of his political activities on the Tesla brand [13].