Tesla's Q1 quarterly report debuts with its first "Company Update," investors closely watch five major topics

Tesla is about to face a critical moment. The company will announce its Q1 2025 financial report at 5:30 AM Beijing time on April 23.

This is not just a routine performance release; the company will announce a "company update" for the first time. The market speculates that this could be an opportunity for Tesla to reveal more about its upcoming projects, particularly the affordable electric vehicle planned for production in the first half of 2025.

Against the backdrop of an expected 41% decline in profits, investors will closely monitor Musk's commitment to autonomous driving, progress on affordable models, trends in declining sales, tariff impacts, and the damage to the company's image from Musk's political involvement. These five key issues will determine whether Tesla can regain Wall Street's trust and emerge from its current predicament.

As of the time of writing, Tesla's stock price has fallen 36% year-to-date.

Mysterious "Company Update" Makes Its Debut

Tesla is scheduled to hold its Q1 earnings call at 5:30 PM Eastern Time on April 22, 2025 (5:30 AM Beijing time on April 23). Unlike before, Tesla has mentioned a "company update" for the first time in its delivery report and official X account.

The market speculates that this could be an opportunity for Tesla to reveal more about its upcoming projects, especially the affordable electric vehicle planned for production in the first half of 2025, mentioned in the Q4 2024 report.

According to FactSet data, Tesla's expected earnings per share for Q1 2025 is $0.43, a year-on-year decline of 4.4%, with revenue flat at $21.45 billion. Analysts estimate earnings per share between $0.30 and $0.51, but the consensus has dropped over 40% since the end of 2024.

Piper Sandler warns that this performance "may be disappointing," and profit margins "may be close to their lowest point in years."

Five Key Focus Areas Draw Investor Attention

1. Progress on Autonomous Driving: Will the Robotaxi Commitment Be Fulfilled?

Investors will closely watch the rollout of Tesla's promised robotaxi. Musk has stated that the paid ride-hailing service will launch in Austin this June, but previous statements about autonomous driving have often failed to materialize.

The latest FSD update shows some progress, but it is still far from the feasibility of the robotaxi platform. The Cybercab—a two-seater car without a steering wheel launched last year—is expected to be released before 2027, priced below $30,000.

2. Affordable Electric Vehicle: When Will the Veil Be Lifted?

Reports suggest that the first low-cost model may simply be a simplified version of the Model Y, potentially launching in 2025 or 2026. This will have significant implications for Tesla's sales and market share, but there are also technical and market risks involved3. Declining Sales: A Warning Signal of Stagnant Growth

The market expects growth to stagnate this year, with a general expectation that delivery volumes will only increase by 3%, although some analysts now anticipate that sales will be lower than in 2024.

Sales in China may see slight growth, but profit margins remain very low, while demand in the U.S. and Europe is affected by Musk's controversial public image.

4. Tariff Impact: Increased Supply Chain Risks

Trump's tariff policy has led to disruptions in the supply of key components, potentially delaying the production of the Cybercab and Semi. Although Tesla has limited exposure to Trump's tariffs compared to other automakers, it still relies on international suppliers for battery components. Investors will closely monitor how Tesla responds to trade tensions and cost pressures.

5. Musk's Political Involvement: Damaged Brand Image

Musk's political involvement has also drawn attention. There are rumors that he will step down from his role with DOGE in May, and people are watching to see if he will return to Tesla full-time.

IBD added that a March YouGov/Yahoo News poll showed that 67% of American adults would not consider purchasing a Tesla, with 37% citing Musk as the reason.

Wedbush analyst Dan Ives, a long-time bull, has lowered his Tesla price target by 40%, calling the situation a "perfect storm," and estimating that Tesla has lost at least 10% of its future customer base, with potential losses exceeding 20% in Europe. Reports of dealer protests and vandalism continue.

Musk is reportedly planning to resign from his position in the White House, but a timeline has not yet been confirmed. Investors will be looking for any updates on his future level of involvement