Core Viewpoint - Tesla experienced a significant revenue decline in the first quarter of 2025, primarily driven by a drop in electric vehicle sales and fewer vehicle deliveries compared to the previous year [1][5]. Group 1: Financial Performance - Tesla generated $13.97 billion in automotive revenue in Q1 2025, a nearly 20% decrease from the same quarter last year [1]. - The company's overall revenue, including automotive, energy generation and storage, and services, was $19.3 billion, down 9% year-over-year [2]. - Tesla reported a net income of $409 million and diluted earnings per share of $0.27 for the quarter [7]. - The operating margin decreased by 343 basis points year-over-year, reaching 2.1% [9]. Group 2: Vehicle Deliveries and Market Factors - Vehicle deliveries totaled 323,800 in Q1 2025, a decline from 386,810 in the same period last year [5]. - The decrease in revenue was attributed to fewer vehicle deliveries, a reduced average selling price, and sales incentives [4]. - The company noted increasing uncertainty in the automotive and energy markets due to rapidly evolving trade policies affecting the global supply chain [7]. Group 3: Energy and Services Revenue - Revenue from energy generation and storage increased by 67% year-over-year, reaching $2.73 billion [7]. - Services and other revenue grew by 15% year-over-year, totaling nearly $2.64 billion in Q1 [7]. Group 4: Future Outlook - The company remains on track to start production of new vehicles in the first half of the year, including more affordable options [11]. - Growth in both vehicle and energy businesses will depend on various factors, including production ramp-up and macroeconomic conditions [11].

Financial Data and Key Metrics Changes - OSS reported consolidated revenue of $15.1 million for Q4 2024, reflecting a 15.1% year-over-year increase driven by double-digit growth across both OSS and Bressner segments [29] - Consolidated gross margin for Q4 2024 was 15.7%, down from 33.7% in the prior year, with gross margin excluding one-time charges at 23.8% [30] - The company expects consolidated gross margin to return to the low 30% range in Q1 2025 [30] Business Line Data and Key Metrics Changes - OSS segment gross margin for Q4 2024 was 9.4%, compared to 45.9% in the same period last year, with expectations for improvement to the mid to upper 30% range in Q1 2025 [31] - Customer-funded development revenue increased by 118% in 2024 to $3.7 million, indicating strong growth potential for future revenues [10] Market Data and Key Metrics Changes - The company experienced greater adoption in both defense and commercial end markets, contributing to a broader customer base [9] - The annual book-to-bill ratio for the OSS segment was lifted to 1.14, with expectations for a ratio of approximately 1.2 in 2025 [11][12] Company Strategy and Development Direction - OSS is focused on transforming the company and pursuing growth opportunities driven by artificial intelligence, machine learning, and sensor processing [5] - The company anticipates significant opportunities in composable infrastructure for data centers, with a projected $200 million multiyear pipeline [17] - OSS aims to leverage its technology to meet the increasing demand for rugged enterprise-class compute solutions in both defense and commercial markets [13] Management's Comments on Operating Environment and Future Outlook - Management noted that while uncertainty related to business and government spending is expected to continue in the first half of 2025, the embedded position with customers remains strong [11] - The company projects consolidated revenue of $59 million to $61 million for 2025, with OSS segment revenue expected to grow over 20% year-over-year [22][23] - Management expressed confidence in the financial position and potential for 2025, despite anticipated near-term volatility [24] Other Important Information - OSS incurred a $1.2 million charge related to contract losses and $7.1 million in inventory charges in 2024, impacting gross margin and net income [27][28] - The company had total cash and short-term investments of $10 million as of December 31, 2024, with no borrowings on its revolving line of credit [35] Q&A Session Summary Question: What was the reason for the lower OSS segment gross margin? - Management indicated variability in gross margin based on the mix of products, with lower margin products shipping in Q4 2024 [40][43] Question: How has the order pipeline changed for 2025? - Management stated that the pipeline remains stable, with no significant shifts, and they are seeing increased opportunities [52] Question: Where is the growth expected to come from in the commercial and defense markets? - Growth is expected to be balanced across both markets, with notable opportunities in data centers and medical imaging [64][66] Question: Are there any unexpected areas of strength in the commercial segment? - The medical imaging sector is seeing faster adoption of AI than initially anticipated [70] Question: How many product programs are currently in development under the OSS segment? - Management noted that customer-funded development programs are crucial for long-term opportunities, but specific numbers were not provided [73]

Core Viewpoint - Tesla's stock has faced significant bearish sentiment, leading to a decline of over 50% since its peak in December 2024, resulting in a market capitalization drop of $700 billion, while short sellers have profited significantly during this downturn [1][2]. Group 1: Stock Performance - Tesla's stock initially rose post-election due to CEO Elon Musk's ties with President Trump but has since lost most of those gains, with a decline of over 50% from its December peak [2]. - The stock was valued at $238.01 at the close of the last trading session, down 37% year-to-date, and extended its weakness to $229 in pre-market trading [6]. - RBC Capital lowered its price target for Tesla from $440 to $320 while maintaining an 'Outperform' rating, indicating a potential upside of 36% from the current valuation [7]. Group 2: Short Selling Activity - Short sellers have capitalized on Tesla's stock decline, making a profit of $16.2 billion since the stock's peak, with short interest increasing by 16.3% in the past month, totaling 71.5 million shares shorted [1][3]. Group 3: Market Challenges - Tesla faces headwinds from backlash against Musk's political views, impacting sales in key regions like Europe, and increasing competition from companies like BYD in the electric vehicle market [4]. - The company is also affected by President Trump's tariffs, with Canada threatening to impose 100% tariffs on Tesla following U.S. tariffs [5]. - Global interest in short selling Tesla stock has reached a one-year high, with Canada leading this trend [5]. Group 4: Future Outlook - Investment strategist Shay Baloor argues that the market has misjudged Tesla, suggesting it is more than just an electric vehicle company and is positioned as a leader in AI and autonomy, with significant potential expected to unfold by 2026 [8].