Tesla (NASDAQ: $TSLA), a major EV manufacturer, released its Q1 fiscal 2025 results on Tuesday, April 22, 2025, after markets closed. Here is a deep dive into the results.
Tesla Releases Q1 Results
For the first quarter of fiscal 2025, Tesla reported revenue of $19.3 billion, a 9.4% YoY decline, and below the analysts’ estimate of $21.1 billion. The EV maker revealed it earned a non-GAAP net income of $934 million, a 39% YoY decline for an adjusted EPS of $0.27, missing estimates of $0.39.
Other Q1 Highlights
Its automotive revenue, which is money from car sales, fell 20% YoY to $13.97 billion. Meanwhile, the company saw a 67% YoY increase in revenue from Energy generation and storage to $2.73 billion, while Services and other revenue rose 15% YoY to $2.64 billion. The company also made $595 million from the sale of automotive regulatory credits, without which it would have reported losses.
Tesla ended Q1 with operating cash flow of $2.2 billion, free cash flow of $0.7 billion, and a $0.4 billion increase in cash and investments to $37 billion.
Impact Of Tariffs And Political Climate
In the earnings report, Tesla acknowledged that Tariffs had impacted its energy business more compared to its automotive business. Tesla stated that it was taking measures to stabilize the business while focusing on maintaining its health. The company also acknowledged that political sentiment would continue to impact its growth prospects in the near term.
Earnings Call Highlights
During the earnings call, Tesla CEO Elon Musk said that he would be scaling back his time at DOGE significantly, amid falling revenue at Tesla. He stated that going forward, he would be allocating a maximum of two days a week to DOGE.
Market Performance
Following Musk’s remarks, TSLA shares surged 3.47% during the early morning trading session to $246.22 per share as of 9:58 AM EDT on April 23, 2025. The stock is down 39.06% year to date, and in the past six months, it has risen 15.19%. Meanwhile, the stock price is up 70.10% in the past 12 months.
Analysts give the stock an overall hold rating, and forecast an average price target of $286.66, a 17.11% upside based on the most recent price. The analysts give TSLA stock a wide range of forecasts, with a high of $465 and a low of $120.
Is Tesla A Buy Following Its Q1 Results?
Tesla has posted the release of its cheaper mass market Model Y variant, which means a delay in the potential sales rebound. Despite recent massive selloffs and the impact of tariffs, TSLA shares are still up over 70% in the past 12 months.
At a forward P/E ratio of 87.72, and the recent decline in revenue, it seems like a risky investment to make now. Additionally, its core EV business is facing challenges in the near term. However, on the upside, its energy storage business has experienced tremendous growth, and its promised robotaxi service could become a major source of revenue in the next few years. Based on these factors, the best plan of action right now would be to potentially wait on the sidelines and watch how it plays out.
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