Tesla earnings updates: Investors seek details on brand damage, lower-cost model
Tesla's earnings call is today at 5:30 pm ET. TSLA stock heads into the report down 44% YTD. Analysts are focused on margins and brand damage.
admin
AP Photo/Jeff Chiu, File
- Tesla will release its first-quarter earnings after the closing bell on Tuesday.
- Shares in the electric-vehicle maker were down 44% year-to-date through Tuesday.
- Investors are on high alert for key details on self-driving initiatives and robotaxis.
Tesla will report first-quarter earnings on Tuesday after the closing bell.
Wall Street is leaning bearish heading into the results as uncertainty swirls around CEO Elon Musk's involvement with the US government. Investors will be listening for updates on margins, robotaxis, the Cybertruck, and a more affordable Tesla model.
Tesla's earnings-release time is roughly 4:30 p.m. ET, and its conference call with analysts will start around 5:30 p.m. ET.
Tesla's stock was down 44% year-to-date through Monday's close, lagging the S&P 500's 11% loss.
Suzanne Cordeiro
Tesla has scaled back its Cybertruck production as it grapples with decreasing demand.
The automaker lowered production targets for several Cybertruck lines in recent months, BI first reported. The changes come to light as a March 20 recall filing said the company has delivered fewer than 50,000 Cybertrucks.
When Tesla launched the Cybertruck in 2023, it was backed by four years of hype, a $120,000 price tag, and a lengthy wait list that helped turn it into a status symbol. A little over a year later, the Cybertruck has become the arguably the most polarizing vehicle on the market.
Tesla has since started to quietly rebrand the Cybertruck as a working man's vehicle, BI's Grace Kay reports. In addition to visible changes, like Tesla redesigning its product page to include photos of the pickup truck hauling equipment, sales workers told BI that there has been a push to increasingly market the Cybertruck toward the traditional truck buyer.
Justin Sullivan/Getty Images
JPMorgan reduced its earnings estimates for Tesla following its weak first-quarter delivery results.
Following the results, the bank said it "may have underestimated the degree of consumer reaction" to Tesla and Elon Musk.
"The trend in Tesla sales is worse than we and the market had appreciated, prompting us to lower our already below consensus estimates accordingly and to expect consensus to decline further, toward our new lower estimates," JPMorgan said.
The bank expects Tesla to sell about 1.7 million vehicles in 2025 and earn $2.30 per share in the full year.
JPMorgan rates Tesla at "Underweight" with a $120 price target.
