Tesla(US:TSLA) The Motley Fool·2025-04-23 08:05Core Viewpoint - Tesla's stock has declined 41% year to date, making it one of the worst-performing companies in the S&P 500, with initial investor optimism following Trump's election turning into disappointment due to various challenges [1][2]. Financial Performance - Tesla's Q1 2025 earnings report showed a 13% decline in vehicle deliveries to 336,681, the lowest in three years [4]. - Total revenue fell 9% to $19.3 billion, with automotive revenue down 20% [5]. - Operating margin narrowed by 3 percentage points to 2.1%, the lowest in six years, and non-GAAP net income decreased by 40% to $0.27 per share [5]. - The company did not provide guidance for Q2 due to uncertainties in global trade policy [5]. Market Share and Competition - Tesla's market share in battery electric vehicles declined in all major markets: China down 4 percentage points to 6.9%, Europe down 8.6 percentage points to 8.2%, and the U.S. down 8.5 percentage points to 47.2% [10]. Strategic Initiatives - CEO Elon Musk plans to reduce his involvement with the Department of Government Efficiency (DOGE) significantly starting in May, aiming to refocus on the company [7]. - Plans for new affordable vehicle models are on track for production in the first half of 2025, which could help regain market share [8]. - Musk reiterated plans for autonomous ride-sharing services in Austin by June, which is crucial as competitors like Waymo are gaining market share [9]. Future Prospects - Tesla aims to have thousands of autonomous humanoid robots (Optimus) working in its factories by year-end, with a production goal of one million units per year by 2029 [11]. - Autonomous driving and robotics present multitrillion-dollar revenue opportunities for Tesla, potentially leading to higher profit margins compared to its core automotive operations [12].