Tesla reports weaker-than-expected Q1 earnings as deliveries slump
's net income in the first quarter was $409 million, down 70.58 percent from the same period last year.
Global deliveries in the first quarter were the lowest since the second quarter of 2022.
Tesla (NASDAQ: TSLA) reported weaker-than-expected first-quarter 2025 earnings after the US stock market close on Tuesday, as vehicle deliveries slumped significantly.
The US electric vehicle (EV) maker reported revenue of $19.34 billion in the first quarter, below the $21.35 billion expected by Wall Street analysts in a Bloomberg survey.
That's down 9.23 percent from $21.3 billion in the same period last year and down 24.79 percent from $25.71 billion in the fourth quarter.
The main reason for the drop in revenue was a decline in vehicle deliveries, which Tesla said was partly due to factors such as the update of the new Model Y and lower average selling prices for vehicles.
The company delivered 336,681 vehicles globally in the first quarter, below Wall Street analysts' expectations of 390,343, according to data it released on April 2.
That's down 12.96 percent from 386,810 units in the year-ago quarter and down 32.06 percent from 495,570 units in the fourth quarter, the lowest since the second quarter of 2022.
Model 3 and Model Y deliveries were 323,800 units in the first quarter, down 12.4 percent from a year earlier.
In the first quarter, Tesla's retail sales in China were 134,607 units, up 1.65 percent from a year earlier, but down 31.64 percent from the fourth quarter of 2024, according to data compiled by CnEVPost.
Retail sales in China contributed 39.98 percent of Tesla's global deliveries in the first quarter.
Tesla's net income attributable to common shareholders was $409 million in the first quarter, a 70.58 percent decrease year-on-year and an 80.78 percent decrease from the fourth quarter.
Notably, Tesla said in its earnings report that previously reported quarterly GAAP net income figures for 2024 have been recast as a result of the adoption of the new crypto-asset standard.
The company reported gross profit of $3.15 billion in the first quarter, which was 14.69 percent lower year-on-year and 24.55 percent lower than the fourth quarter.
Gross margin for the first quarter was 16.3 percent, down 1.1 percentage points from a year ago and flat from the fourth quarter.
Tesla had been confident of growth in its automotive business in 2025, but after its first-quarter results, the company has delayed updating its full-year guidance until next quarter.
Plans for new vehicles, including more affordable models, remain on track k for start of production in the first half of 2025, Tesla said.
Tesla has stopped taking orders for Model S and Model X in China, likely due in part to a worsening trade war that has hit both imported models.
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