Tesla Inc

Tesla delivered a sharply disappointing first quarter, missing on both the top and bottom lines as a sweeping global production changeover weighed heavily on results. Non-GAAP EPS came in at $0.27, falling well short of the $0.42 consensus estimate by 35.71%, while revenue dropped 9.2% year-over-year to $19.34 billion, roughly $2.07 billion below the $21.41 billion Wall Street had expected. The primary culprit was the simultaneous retooling of Model Y production lines across all four global factories, which dragged automotive revenue down 20% to $13.97 billion as deliveries fell 13% to 336,681 units; reduced average selling prices and a roughly $300 million foreign-exchange headwind compounded the damage. GAAP operating income collapsed 66% to $399 million, compressing margins to just 2.1%. Energy Generation and Storage offered a meaningful counterpoint, with revenue surging 67% to $2.73 billion. Separately, Tesla's European sales have continued to soften amid brand-perception pressures, adding a demand-side overhang to the already turbulent quarter. Management declined to reaffirm full-year guidance, promising a fresh update alongside Q2 results, while noting that more affordable vehicle models remain on track for a first-half 2025 production start.