Tesla earnings plunge forecast

Tesla's first quarter adjusted earnings plunged 48%, but plans for a lower-priced model send shares up 8% in after-market trading.

Tesla faced a challenging first quarter, with adjusted earnings dropping by 48% and total revenue falling by 9%, missing Wall Street estimates. Despite this, the company announced plans for a lower-priced car to be produced in the second half of 2025. This move, while promising, comes at a time when Tesla has a history of delays in vehicle launches.

Investors reacted positively to the news, with Tesla's shares rising 8% in after-market trading. However, concerns remain about the company's future, especially as Tesla's stock value has dropped by 43% this year. The recent price cuts and decline in global sales have raised doubts among investors, with some questioning the company's ability to meet EV demand forecasts.

Analysts are closely watching Tesla's upcoming earnings report and investor comments for insights into the company's future. The competition in the EV market, particularly from Chinese automakers, poses a significant challenge to Tesla's dominance. The company's plans for a lower-priced Model 2 and driverless "robotaxis" will be key areas of focus for investors.

Despite its challenges, Tesla remains the most valuable automaker globally, with a market cap of $469 billion. However, the company has lost more than half of its value from its peak as a $1 trillion stock. Analysts are forecasting lower adjusted earnings for Tesla, with a focus on its profit margins and guidance for future plans.

The uncertainty surrounding Tesla's future, particularly in the face of increased competition and market challenges, makes the upcoming earnings report and investor comments crucial for the company's trajectory. Elon Musk's messaging during the call will be closely scrutinized, with investors looking for clarity on Tesla's strategic direction and ability to navigate the evolving EV landscape.