Tesla's main financial metrics missed expectations, and it will reassess its 2025 growth forecast

Tesla (TSLA. O) omitted its previous forecast for 2025 sales growth in its earnings report on Tuesday local time and promised to reassess its outlook next quarter, a sign that tariffs, an aging product line and a public backlash sparked by CEO Elon Musk are taking their toll on the electric carmaker. The earnings report showed Tesla's 2025 Q1 revenue of $19.335 billion and adjusted earnings per share of $0.27, both missing analysts' average estimates, but its gross profit margin beat the market's average estimate of 15.82% to 16.3%. The higher-than-expected gross margin relieved investors as Tesla is running promotions and competition is intensifying. Tesla did not reiterate its previous forecast that full-year sales would return to growth, instead saying it was "making prudent investments to lay the foundation for growth in the automotive business". This will depend on factors such as capacity increases and the "broader macroeconomic environment". "The impact of global trade policy changes on the automotive and energy supply chains, our cost structure, and demand for durable goods and related services is difficult to quantify," Tesla said.