Tesla(US:TSLA)2025-04-27 03:56Summary of Tesla, Inc. 1Q25 Earnings Call Company Overview - Company: Tesla, Inc. (TSLA) - Date of Call: April 22, 2025 Key Financial Metrics - Revenue: $19.3 billion, missing consensus of $20.0 billion but beating Barclays' estimate of $19.0 billion [9] - Auto Revenue: $13.967 billion, below consensus of $14.119 billion [11] - Energy Revenue: $2.730 billion, missing consensus of $3.157 billion [12] - Adjusted EPS: $0.27, missing consensus of $0.38 [12] - GAAP EBIT: $399 million, missing consensus of $861 million [12] - Auto Gross Margin (ex-regulatory credits): 12.5%, beating consensus of 11.6% [12] - Adjusted Free Cash Flow: $664 million, beating consensus of $0 million [12] Core Insights - Mixed Results: Tesla's 1Q25 results were mixed, with a headline miss on EPS but better-than-expected margins, indicating a resilient operational performance despite revenue shortfalls [2][3]. - Operational Expenses: The EPS miss was attributed to elevated operating expenses and "other expenses," likely linked to cryptocurrency losses [3]. - Volume Growth Guidance: Tesla pulled its previous guidance for year-over-year volume growth, citing macroeconomic uncertainties, particularly political sentiment [4][10]. - Tariff Impact: The company noted that tariffs are impacting its Energy business more significantly than its automotive segment, particularly concerning LFP batteries sourced from China [4]. Future Outlook - Affordable Model Launch: Plans for the launch of a more affordable model in 1H25 remain intact, despite earlier media reports suggesting delays [5][12]. - Robotaxi Pilot: Tesla reiterated its plans for a pilot launch of Robotaxi in Austin by June 2025, with volume production expected in 2026 [5][12]. - Battery Production: The U.S. Model 3/Y now utilizes 100% U.S.-built battery packs, and the 4680 battery cell is IRA compliant, with lithium refining and cathode production set to start in 2025 [12]. Industry Context - Industry Rating: The U.S. Autos & Mobility sector is rated as Negative, reflecting deteriorating fundamentals and valuations [8][38]. - Price Target: The price target for Tesla is set at $275.00, with a current price of $237.97, indicating a potential upside of 15.6% [8][48]. Risks and Considerations - Demand Weakness: Continued demand weakening could necessitate larger-than-expected price cuts [56]. - Regulatory Challenges: Potential regulatory actions regarding Tesla's Autopilot and Full Self-Driving (FSD) features pose risks [56]. - Competition: Increasing competition from both legacy OEMs and new entrants in the EV market could impact Tesla's market share and pricing strategy [56]. Additional Notes - Analyst Conflicts: Barclays may have conflicts of interest due to its business relationships with Tesla, which should be considered when interpreting this report [6].