TSLA Earnings: Revs & EPS Fall Short, Robotaxi Plans Proceed

Core Viewpoint - Tesla's Q1 2025 earnings report showed significant misses on EPS and revenue targets, yet the market's muted reaction indicates a level of pessimism already priced in [7]. Financial Performance - Earnings Per Share (EPS) of $0.27 missed Wall Street estimates of $0.43 [8] - Revenue of $19.3 billion missed Wall Street estimates of $21.11 billion, representing a 9% year-over-year decline [8] - Gross margin remained steady at 16.3%, consistent with Q4 margins [4][8] Market Context - Tesla shares have declined nearly 40% in 2025 due to tariff concerns, a slowing electric vehicle market, macroeconomic weakness, and political backlash [1] - The options market implied a potential move of approximately 9% in Tesla shares following the earnings release [1] Business Developments - Tesla plans to revisit guidance in Q2, which is typically seen as a bearish signal, but current global tariff chaos may provide the company some leeway [2] - The launch of Tesla's pilot Robotaxi program in Austin, Texas, is on track, despite previous concerns about delays due to tariffs and macroeconomic factors [3] - Tesla's energy storage business grew by 67% year-over-year, marking it as the strongest growing segment of the business [6] - The company is on track to begin working on new vehicle models in the first half of 2025, including a highly anticipated low-cost model [5]