Tesla misses on revenue but beats on profit as auto margins jump
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- Tesla posted adjusted EPS of $0.41, beating the $0.37 consensus while revenue fell short at $22.39 bn versus $22.64 bn expected.
- Tesla automotive gross margin rose to 19.2%, its highest quarterly level, helped by higher ASP and lower material costs.
- Tesla capital expenditures surged 67% to $2.49 bn in Q1, and the company now targets >$25 bn for the full year, up from the prior $20 bn outlook.
- BYD and Xiaomi pressure Tesla, prompting the automaker to plan cheaper Model Y and Model 3 trims.
- Supreme Court struck down a large portion of Trump’s tariff agenda, and Tesla recorded one‑time gains from refunds tied to that decision.
Why it matters: Shareholders see a 41‑cent EPS beat and a 19.2% margin lift, while Tesla’s $2.5 bn capex surge and Chinese‑EV price pressure force a shift to lower‑priced models, risking future margin compression.
