EV Sales Slide, Energy Surges, Margins Squeeze
The EV giant just reported its weakest quarter in nearly three years. Deliveries are falling, and its grip on global market share is slipping.
In Q1, global deliveries dropped 13% year over year this in a battery EV market that’s estimated to have grown more than 20%. The Model Y revamp ran headfirst into political headwinds and buyer fatigue. Meanwhile, Chinese competitors like BYD are gaining ground fast. In Europe, Tesla vehicle registrations sank over 40%. Wall Street isn’t impressed either TSLA is now trading 50% below its peak.
Tesla’s valuation has long hinged on its future potential. But right now, the present is looking grim. Elon Musk is doubling down on autonomy and AI to turn the tide. But with the core business under strain, investors need more than promises they need tangible progress.
Here’s what Q1 revealed
- Tesla Q1 FY25 breakdown
- The numbers behind the brand’s decline
- Notable soundbites from the earnings call
- Updates on Optimus and the Cybercab
Tesla’s Q1 FY25 Breakdown: The Pressure Is Mounting
Tesla's revenue engine runs on three main cylinders:
🚗 Automotive (73%) – Sales from its EV lineup: Models S, 3, X, Y, and the Cybertruck
🌞 Energy Generation & Storage (14%) – Solar and battery solutions like the Solar Roof and Powerwall.
🔌 Services & Other (13%) – Includes Supercharging, vehicle servicing, and parts/accessory sales.
But the latest quarter showed serious wear and tear under the hood.
📉 Key Q1 Metrics
Deliveries: Down 13% Y/Y to 337K units Tesla missed by 40K, marking its worst quarter in two years.
Production: Fell 16% Y/Y to 363K, the lowest since Q2 2022. The Model Y transition hit output hard.
Inventory Warning: Tesla built 26K more vehicles than it sold, raising the specter of bloated stock and more price cuts.
Revenue: Dropped 9% Y/Y to $19.3B a $2.1B shortfall
Gross Margin: Slipped to 16% (down 1 percentage point Y/Y)
Operating Margin: Just 2%, a 3-point drop.
Non GAAP EPS: Missed by a wide margin at $0.27 (vs. $0.42 est)
📊 Segment Highlights
Auto Revenue: Plunged 20% Y/Y its sharpest decline in years, despite discounts and financing incentives.
Energy Revenue: Surged 67% Y/Y, showing Tesla’s diversification is starting to matter
Gross Margins: 16% (-1pp Y/Y)
Auto (ex-credits): 12.5%, down from 16% a year ago
Energy: 29%, Tesla’s most profitable segment, though off Q3 highs
Services & Other: 4%, marking 12 straight profitable quarters.
Tesla’s once formidable margins fueled by gigafactory scale, DTC sales, and zero ad spend are now under siege. Rising competition, relentless price cuts, and softening demand are taking a toll. the growth narrative is shifting. Tesla’s energy and services businesses are rising, but the core auto unit is flashing warning lights
The EV giant just reported its weakest quarter in nearly three years. Deliveries are falling, and its grip on global market share is slipping.
In Q1, global deliveries dropped 13% year over year this in a battery EV market that’s estimated to have grown more than 20%. The Model Y revamp ran headfirst into political headwinds and buyer fatigue. Meanwhile, Chinese competitors like BYD are gaining ground fast. In Europe, Tesla vehicle registrations sank over 40%. Wall Street isn’t impressed either TSLA is now trading 50% below its peak.
Tesla’s valuation has long hinged on its future potential. But right now, the present is looking grim. Elon Musk is doubling down on autonomy and AI to turn the tide. But with the core business under strain, investors need more than promises they need tangible progress.
Here’s what Q1 revealed
- Tesla Q1 FY25 breakdown
- The numbers behind the brand’s decline
- Notable soundbites from the earnings call
- Updates on Optimus and the Cybercab
Tesla’s Q1 FY25 Breakdown: The Pressure Is Mounting
Tesla's revenue engine runs on three main cylinders:
🚗 Automotive (73%) – Sales from its EV lineup: Models S, 3, X, Y, and the Cybertruck
🌞 Energy Generation & Storage (14%) – Solar and battery solutions like the Solar Roof and Powerwall.
🔌 Services & Other (13%) – Includes Supercharging, vehicle servicing, and parts/accessory sales.
But the latest quarter showed serious wear and tear under the hood.
📉 Key Q1 Metrics
Deliveries: Down 13% Y/Y to 337K units Tesla missed by 40K, marking its worst quarter in two years.
Production: Fell 16% Y/Y to 363K, the lowest since Q2 2022. The Model Y transition hit output hard.
Inventory Warning: Tesla built 26K more vehicles than it sold, raising the specter of bloated stock and more price cuts.
Revenue: Dropped 9% Y/Y to $19.3B a $2.1B shortfall
Gross Margin: Slipped to 16% (down 1 percentage point Y/Y)
Operating Margin: Just 2%, a 3-point drop.
Non GAAP EPS: Missed by a wide margin at $0.27 (vs. $0.42 est)
📊 Segment Highlights
Auto Revenue: Plunged 20% Y/Y its sharpest decline in years, despite discounts and financing incentives.
Energy Revenue: Surged 67% Y/Y, showing Tesla’s diversification is starting to matter
Gross Margins: 16% (-1pp Y/Y)
Auto (ex-credits): 12.5%, down from 16% a year ago
Energy: 29%, Tesla’s most profitable segment, though off Q3 highs
Services & Other: 4%, marking 12 straight profitable quarters.
Tesla’s once formidable margins fueled by gigafactory scale, DTC sales, and zero ad spend are now under siege. Rising competition, relentless price cuts, and softening demand are taking a toll. the growth narrative is shifting. Tesla’s energy and services businesses are rising, but the core auto unit is flashing warning lights
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🟣MasterClass moonypto.com/masterclass
🟢Signal moonypto.com/signal
🔵News t.me/moonypto
t.me/moonyptofarsi
🟢Signal moonypto.com/signal
🔵News t.me/moonypto
t.me/moonyptofarsi
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.