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Key Takeaways
- Tesla will announce its first-quarter earnings on Tuesday after the market closes, but analysts are divided about the electric vehicle manufacturer.
- Revenue and adjusted profits will fall from last year due to disappointing deliveries and production.
- The EV maker's stock has suffered as the company has been the center of protests and controversy over CEO Elon Musk's political efforts.
Tesla (TSLA), the electric vehicle maker, is scheduled post its first quarter earnings report after Tuesday bell. Analysts have been divided about the electric vehicle maker in the lead-up to the results.
Analysts tracked by Visible Alpha are split between 10 "buy" ratings, four "hold," and four "sell" ratings. Ahead of last quarter's report, the distribution was nine "buy," six "hold," and three "sell" ratings.
The mean price target, $314.41 per Visible Alpha data, represents about a 30% premium to its close on Thursday, the last trading day of a holiday-shortened week—but that average target is down nearly $50 from the average prior to last quarter's earnings.
Tesla is expected report a revenue decline of less than 1% to $21.18 Billion, and adjusted earnings per share (EPS), which are forecast to fall by almost 8% over the past year to $0.42. The revenue estimate is down by over 16% while the adjusted EPS has dropped by over 40% from last quarter.
Despite political concerns, deliveries and production fell short.
Earlier this week, Reuters reported that the company has paused shipments of parts from China for its semi trucks and Cybercab autonomous taxi because of the Trump administration's tariffs, potentially delaying production and release of the vehicles.
The company’s production and delivery numbers were below estimates for the second consecutive quarter when they released them earlier this month. Elon Musk’s involvement with the Trump administration has also sparked protests and controversy about the EV maker. Sales have been declining in key markets for the first half of this year.
Tesla stock was one of the worst performers in the S&P 500 in the first quarter. Analysts have reduced estimates for EV deliveries and profits, as well as price targets, including those who are the most bullish. Musk has been asked to stop his political activities and focus on Tesla because the stock is down.
Tesla shares have returned to a level similar to that of pre-election, around $240. This is down from a record close on Dec. 17, which was $479.86.
