Tesla (TSLA) Lags Q1 Earnings and Revenue Estimates

Core Insights - Tesla reported quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.44 per share, and down from $0.45 per share a year ago, representing an earnings surprise of -38.64% [1] - The company posted revenues of $19.34 billion for the quarter, missing the Zacks Consensus Estimate by 7.85%, and down from $21.3 billion year-over-year [2] - Tesla shares have declined approximately 43.7% year-to-date, compared to a 12.3% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.57 on revenues of $24.62 billion, and for the current fiscal year, it is $2.61 on revenues of $103.99 billion [7] - The trend of estimate revisions for Tesla has been unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Automotive - Domestic industry, to which Tesla belongs, is currently ranked in the bottom 15% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]