After the market closed on Tuesday, Tesla (TSLA) announced first-quarter adjusted earnings per share (EPS) of $0.27, which was below Wall Street’s consensus estimate of $0.41.

The revenue of $19.34 billion also missed expectations by $2.07 billion and represented a 9.2% decline year over year.

In the initial minutes of after-hours trading, TSLA shares dipped 1% but later saw a slight uptick of less than 1%.

Management attributed the drop in vehicle deliveries for the quarter, which had already been disclosed, to the updates made to the Model Y across all four production facilities. Furthermore, management indicated that a decrease in the average selling price was due to necessary sales incentives.

Tesla Business

Tesla reported delivering 336,681 vehicles in Q1 2025, a decrease from 386,810 a year prior and a significant drop from 495,570 in Q4 2024. Overall, total deliveries fell by 13%, and total production saw a 16% decline.

Total automotive revenue plummeted by 20% year over year to just under $14 billion this quarter. Meanwhile, revenue from energy generation and storage experienced a 67% year-over-year increase to $2.7 billion, while Services & Other brought in $2.6 billion, marking a 15% year-over-year rise.

Ahead of the earnings announcement, Jeff Kilburg, the founder and CEO of KKM Financial, stated on CNBC that the recent fluctuations in TSLA stock were more related to political factors than the company’s operational performance. Kilburg referred to Tesla as the “purest AI play” and downplayed the recent challenges in vehicle deliveries.