Tesla (TSLA, Financial) is just days away from reporting its first-quarter results, and expectations are mixed. Analysts forecast revenue around $21.81 billion and earnings per share of $0.43—both down from Q4 2024, when Tesla pulled in $27.2 billion and $0.74 per share. That drop reflects the challenges the company has faced lately.
The big issue? Production and delivery numbers. Tesla built 362,000 vehicles in the first quarter, a 16% year-over-year decline. Deliveries weren't much better, hitting 336,681 units, down 13%. It's Tesla's weakest quarter for deliveries in three years and came in below Wall Street expectations, raising fresh concerns about demand and growth momentum.
Margins are another pressure point. Tesla has been working hard to lower its costs—bringing the average cost to build a car from over $38,000 in early 2023 to under $35,000 by the end of 2024. Whether that trend continued into Q1 could be key for profitability, especially with margins forecast to slip to 15.8%.
Still, there's a bright spot. Tesla's energy division—thanks to growing interest in Megapack and Powerwall products—has been expanding fast. The segment now accounts for roughly 10% of Tesla's revenue and saw 67% growth last year. Investors will be watching closely to see if that momentum continues.
