Figures fail to significantly buoy stock as firm admits ‘significant effort and hard work’ needed to achieve goals
Tesla reported its first-quarter earnings on Wednesday, disclosing some better-than-expected results but faltering in some key areas. The report failed to significantly buoy Tesla’s stock, which has limped along this year while its CEO, Elon Musk, has tried to sell the company’s new vision of humanoid robots and self-driving robotaxis. Its core car business has struggled in the face of competition from Chinese counterparts and backlash against his close involvement with the Trump administration.
“There remains significant effort and hard work to realize our mission of Amazing Abundance,” Tesla said in its report, while claiming that demand for its vehicles was rebounding.
Tesla revealed earnings of 41 cents a share on Wednesday after market close, more than the 37 cents per share that Wall Street expected. The company reported a positive free cash flow, but missed market expectations of its revenue with $22.39bn – weaker than the $22.6bn Wall Street estimated.
Tesla’s stock rose over 3% immediately following the release of its report, but dropped and erased those gains after Musk announced plans for large capital expenditure this year.
