Tesla stock surges 4% ahead of Q1 earnings: what to expect

Tesla shares will be in focus today as the electric vehicle maker is set to release its first-quarter financial results after the US market closes.

The company will post its earnings for the January–March period on Tuesday, April 22, 2025.

Tesla management will host a live update and Q&A webcast at 4:30 pm Central Time (5:30 pm Eastern Time) to discuss the results and business outlook.

Investors and analysts will be listening for commentary on demand trends, margin pressures, and CEO Elon Musk’s priorities as operational challenges persist.

The TSLA stock is up over 4% to trade at $236.80 in early trade on Tuesday.

The stock is down close to 38% since the start of the year.

Tesla has had a bumpy ride in 2025

Beyond the financials, Tesla has drawn scrutiny over CEO Elon Musk’s ties to the Trump administration.

Protests and shareholder unrest have emerged over Musk’s political affiliations, with some investors speculating that the company’s operational focus could improve if Musk stepped back from his involvement in DOGE and concentrated on Tesla’s core business.

Tesla’s production, delivery, and sales figures for the first quarter, released on April 2, pointed to weaker performance.

The company produced over 362,000 vehicles and delivered more than 336,000 units — figures that fell short of market expectations and marked a sequential decline.

As a result, the company is expected to report lower profit margins and earnings for the quarter.

What to expect from Tesla’s Q1 earnings

Wall Street anticipates a decline in adjusted earnings per share (EPS) of nearly 8% year over year to $0.44.

Revenue is forecast to slip less than 1% to $21.83 billion.

Expectations have deteriorated significantly since Tesla’s last quarterly report.

The consensus for adjusted EPS has fallen by over 40%, while revenue estimates have been cut by more than 16%.

Some analysts remain even more bearish, projecting earnings of $0.36 a share on $20.1 billion in sales, down from $0.45 a share on $21.3 billion a year earlier.

The confluence of weakening volumes, heightened competition in the electric vehicle market, and sustained pricing pressures suggests this earnings release is likely to mark yet another challenging period for the company.

Dan Ives issues major warning for Tesla

Wedbush Securities analyst Dan Ives issued a blunt warning ahead of Tesla’s first-quarter earnings, calling the current situation a “code red” moment for the company.

Ives said CEO Musk should immediately step back from his role at the Department of Government Efficiency, urging him to fully recommit to Tesla’s leadership.

“Musk needs to leave the government, take a major step back on DOGE, and get back to being CEO of Tesla full-time,” Ives wrote in a note to clients Sunday.

Tesla is Musk and Musk is Tesla… and anyone that thinks the brand damage Musk has inflicted is not a real thing, spend some time speaking to car buyers in the US, Europe, and Asia. You will think differently after those discussions.”

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