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

On April 23rd, Tesla (TSLA. O) omitted its previous forecast for sales growth in 2025 in its earnings report on Tuesday local time and promised to reassess its outlook next quarter. In a sign that tariffs, an aging product line and a public backlash sparked by CEO Elon Musk are taking a toll on the electric car maker. The earnings report showed Tesla's revenue of $19.335 billion in Q1 2025 and adjusted earnings per share of $0.27, both missing analysts' average expectations, but its gross profit margin beat the market average estimate of 15.82% to 16.3%. The higher-than-expected gross margin gave investors a sigh of relief 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.