Electric car maker Tesla reported a significant 48% decline in adjusted earnings in the first quarter of 2025, which fell short of Wall Street expectations. The company also saw a 9% drop in total revenue and a 2% decrease in profit margin, both missing analyst estimates.
Despite this disappointing financial performance, Tesla sought to reassure investors by unveiling plans for a more affordable model to be released in the second half of 2025. CEO Elon Musk highlighted the company’s advancements in artificial intelligence and self-driving technology, as well as teased plans for humanoid robots and driverless “robotaxis.”
After the earnings call with investors, Tesla’s shares surprisingly rose by 11% in after-market trading, indicating a level of confidence from investors despite the poor financial results. The company has been facing numerous challenges including a decline in global sales, staff layoffs, and price cuts, as well as increasing competition from both Western and Chinese automakers.
Tesla reported adjusted net income of $1.5 billion, or 45 cents a share, which fell short of analyst forecasts. The company also experienced negative cash flow of $2.5 billion, marking the first time since the first quarter of 2020, due to various challenges in the first quarter such as supply chain disruptions and conflicts in the Red Sea.
Despite the setbacks, Tesla remains optimistic about its future prospects and technological advancements, as evidenced by the positive reaction from investors following the earnings call. Stay tuned to Jala News for more updates on Tesla’s journey in the electric vehicle market.
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