Tesla reported its first-quarter earnings this morning after the market closed. The headlines were as follows:
- Revenue of $US19.3bn fell well short of Bloomberg consensus of $US21.37 billion.
- Revenue in Tesla’s core automotive business plunged 20% year-over-year, declining to $14 billion, the weakest since Q3 2021.
- EPS of 27c was a miss to expectations of 43.4c, plus the company omitted an earlier prediction that sales would return to growth by the full year.
The shares are up 4% in after-hours trade and have sustained that move. Traders were expecting a bad result and got exactly that, though CEO Elon Musk provided reassuring commentary that he is stepping away from his role in the US Department of Government Efficiency (DOGE) and will be spending more time focusing on Tesla.
- Plenty of bad news is already built into the share price, though given the increasing competition in the EV market, and question marks around Musk’s impact on the brand, it still looks too hard for us.
MM is neutral TSLA
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