Tesla (TSLA) stock rose 6% on Wednesday after the company reported first quarter earnings on Tuesday, which missed expectations. However, Tesla confirmed plans to launch new vehicles in the first half of 2025. During the post-earnings call, CEO Elon Musk mentioned he would spend more time at Tesla and less in Washington.
“Starting early next month, in May, my time allocation to DOGE [Department of Government Efficiency] will drop significantly,” Musk said. Musk said he’d continue to spend a day or two per week at DOGE, but said he will be “allocating far more of my time” to Tesla.
Tesla stock jumped 5% in after-hours trading after Musk’s disclosure.
At close: April 22 at 4:00:01 PM EDT
Read more about Tesla’s stock moves and Wednesday’s market action.
Tesla reported Q1 revenue of $19.34 billion vs. $21.43 billion (Bloomberg estimate), well below the $21.3 billion reported a year ago. Tesla posted adjusted earnings per share of $0.27 vs. $0.44 estimated.
Tesla said plans for new affordable vehicles are on track for start of production in the first half of 2025 and that it still expects Robotaxi volume production starting in 2026. Along with Robotaxi testing, these were two big investor concerns heading into earnings.
The company blamed trade uncertainty as a reason behind slumping sales.
“Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,” the company said in a statement. “This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term.”
Musk said on the call that he told Trump that “lower tariffs” were better for the country but ultimately the decision on tariffs is up to the president.
Because of this uncertainty, Tesla said it would revisit its 2025 guidance in its second quarter financial update and removed its long-term growth forecast.
Read more: What Trump’s tariffs mean for the economy and your wallet
Tesla said its first quarter gross margin hit 16.3%, better than the 16.1% expected, with automotive gross margin ex-regulatory credits coming in at 12.5%.
In the past, Tesla had promised to launch a lower-priced electric vehicle in the first half of 2025, along with other new vehicles that the company said would allow it to return to a 50% growth rate compared to 2023.
Reuters reported on Friday that Tesla’s plans to launch an affordable EV, which include a stripped-down version of the Model Y, have been delayed until later this year. Tesla has not responded to that report.
