Sales incentives and low average sales prices weigh on profitability, and without $ 595 million in regulator credit, the auto business would have posted a loss. Tesla cited the production line update and a challenging macro environment for the decline.
So why is the stock growing?
Investors appear to be betting on the re -engagement of the mask. During the post-earnings call, Musk announced that he would reduce his time spent on the Trump administration’s official efficiency project- Dog- and focus on Tesla. He is still planning to dedicate 40% of his time to the initiative, but was sufficient to bounce a relief rally that he would involve more in Tesla’s operation.
The company also confirmed the deadline for major future projects. Tesla said it is on track to launch low -cost EV in the first half of 2025 and is a pilot robotaxi service in Austin by June. While the management accepted the need to re -view development in the next quarter due to uncertainty related to tariffs, investors were encouraged by signs of operational continuity.
Now what should traders see?
Tesla’s bounce came in five years despite the worst quarter auto revenue fall. With the approach of margin and full-year development under pressure, it is no longer clear, the next major catalyst will be the cheap EV launch and execution on the robotaxi rollout. The time of Musk will be under investigation. Traders will also keep a close watch on tariff development and June Q2 guidance updates, which can clarify the demand picture and capital expenses schemes in the second half.
More information in our economic calendar.
