Live Coverage: Where Will Tesla’s Stock Head After Earnings?
Tesla (Nasdaq:TSLA) reports Q2 2025 earnings after the market closes today. Wall Street expects modest sequential improvement from a weak Q1, when margin contraction, factory changeovers, and brand pressure weighed heavily on results. This quarter matters as a checkpoint on several fronts: execution on autonomous vehicle ambitions, energy margin durability, and the rollout of Tesla’s lower-cost platform. After CEO Elon Musk reaffirmed plans for a robotaxi debut in Austin this summer, investors will want tangible proof that the company can move from vision to monetization.
What to Expect
-
Revenue: $25.43 billion
-
EPS (Normalized): $0.59
-
FY 2025 Revenue: $106.29 billion
-
FY 2025 EPS: $2.24
That implies +31.5% revenue growth YoY and a roughly 40% EPS decline from FY24’s $3.76 base.
Key Areas to Watch
1. Robotaxi Pilot Execution in Austin
Musk reiterated that paid fully autonomous rides using Model Ys will begin in Austin by June, with broader U.S. rollout by year-end. Validation remains a hurdle, especially for long-tail safety risks. Progress here is essential for Tesla’s long-term valuation narrative tied to autonomy and AI monetization.
2. Energy Business Gross Margin
Tesla posted a record gross profit in energy storage in Q1, even as deployments fell. Management says utility-scale Megapack demand remains strong, and the LFP tariff exposure in the U.S. will be a key watchpoint for investors evaluating Energy’s sustainability.
3. CapEx and Tariff Impact Guidance
Tesla maintained >$10B in CapEx for the year, driven by Optimus, Cybercab, and onshoring supply chains. Management cited tariffs as a multi-faceted cost risk—not just on sales, but also on importing factory equipment from China, which could hit expansion timelines.
4. Volume Recovery and Brand Sentiment
After Q1 Model Y changeovers disrupted deliveries, Tesla needs to show sequential volume normalization. Management also referenced vandalism and “hostility toward the brand” as demand overhangs—this quarter offers a test of real-world resilience.
5. Update on Cheaper Models
Tesla confirmed it still expects to begin production of lower-cost vehicles in June, a critical unlock to broaden addressable market. Execution milestones here will be watched closely as part of Tesla’s midterm volume strategy.
If You’ve Been Thinking About Retirement, Pay Attention (sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
-
Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
-
Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
-
Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today! (sponsor)
The post Live Coverage: Where Will Tesla’s Stock Head After Earnings? appeared first on 24/7 Wall St..