As Tesla prepares to report second-quarter earnings, Wall Street expects the electric vehicle maker to post its fourth straight revenue miss with sales dropping about 10% from last year. Analysts predict revenue will fall to between $22.2 billion and $22.8 billion, down from $25.5 billion in the same quarter last year.
Tesla faces fourth straight revenue miss as Q2 sales expected to drop 10% year-over-year
The company’s earnings per share are also expected to take a hit. Wall Street forecasts earnings of 40 cents per share, while crowdsourced estimates predict 39 cents. That’s a sharp drop from 52 cents per share a year ago. Tesla’s first-quarter earnings already disappointed investors when the company reported 27 cents per share versus the expected 38 cents. Analysts are now closely monitoring Tesla revenue projections for 2023, as any further declines could significantly impact investor confidence. Additionally, concerns about production challenges and rising costs might overshadow the company’s long-term growth potential. As a result, the market remains cautious, with many investors reassessing their positions amid evolving economic conditions.
Tesla delivered about 373,728 Model 3 and Model Y vehicles in the second quarter, marking a 13.5% decline from last year. The company produced 25,000 more vehicles than it delivered, creating an inventory buildup. For all of 2025, delivery estimates range from 1.35 million to 1.66 million vehicles, well below the 1.79 million delivered in 2024.
Profit margins continue to face pressure from price cuts and lower sales volumes. Tesla’s automotive gross margin hit 16.3% in the first quarter, missing the 17% estimate. The company’s trying to cut costs while dealing with declining revenue and fierce competition in the electric vehicle market. The elimination of federal EV tax credits has forced Tesla to implement temporary price cuts on its Model 3 and Model Y vehicles to maintain competitiveness.
One major question hanging over the earnings call is whether Tesla will provide new guidance for 2025. Management withdrew full-year targets after the first-quarter miss, blaming trade policies and economic uncertainty. Investors want to know if the company will offer updated projections or keep its guidance suspended. Analysts suggest the company’s future projections may depend more on Musk’s strategic insights during the earnings call than on the actual financial results.
CEO Elon Musk’s political activities have also affected the brand’s image among some consumers. Meanwhile, the company’s automotive growth has stalled over the past year as global competition intensifies and demand shows signs of saturation.
Tesla’s stock price could swing dramatically based on the results. Investors are watching for updates on the robotaxi program and energy storage business, which could become important growth drivers. The energy storage division’s utilization data has helped analysts estimate quarterly revenue more accurately.