Tesla delivered disappointing earnings just after the bell on Tuesday, missing Wall Street expectations.
“It is difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains, our cost structure and demand for durable goods and related services,” the company said in a letter to investors, adding it would be revisiting guidance in its Q2 update.
“While we are making prudent investments that will set up both our vehicle and energy businesses for growth, the rate of growth this year will depend on a variety of factors, including the rate of acceleration of our autonomy efforts, production ramp at our factories and the broader macroeconomic environment.”
The electric vehicle company reported a double miss on EPS of $0.27 vs an estimated $0.39 and revenue of $19.34bn vs $21.11bn estimate. It’s the company’s lowest reported revenue since Q3 2021.
Additionally, net income fell 71 percent in the first quarter.
Tesla had been plagued with a series of bad headlines ahead of the report, with reports of vandalized vehicles, widespread protests and customers looking to ditch their cars. Even the price of used vehicles are dropping.
About half of Americans view CEO Elon Musk and the company negatively following his slashing of federal bureaucracy while running the Department of Government Efficiency, a new CNBC poll found.
The stock is down approximately 40 percent year-to-date and remained relatively unchanged in the after-hours market.
Musk himself will be discussing the company’s woes in an earnings call at 5.30 p.m. ET, something he said he’d rarely do in 2021. It’s unclear what the CEO could say to forge a road ahead.
Long-term investors are hoping the company pulls through on its artificial intelligence and robotic ambitions. However, auto revenue accounts for the majority of Tesla’s overall revenue, and sales slumped 13 percent during the first three months of the year.
During an all-hands meeting in March, Musk emphasized plans for Optimus, a humanoid robot he is seeking to commercially roll out in the coming years.
Moreover, the company’s first robotaxi service will begin in Austin in June.
This is a developing story…
