Tesla will report its first-quarter earnings on Tuesday, with Wall Street anticipating a rough update after the company posted sharply lower-than-expected delivery numbers and continued stock declines.

The EV maker delivered 336,681 vehicles in Q1 — well below estimates and 13% lower than the same period last year. Tesla’s share price has dropped 44% in 2025 alone, as concerns mount over slowing sales, delays in launching a low-cost model, and the impact of President Trump’s 25% auto tariffs.

CEO Elon Musk has increasingly become a focal point of investor frustration. His outspoken political persona and distractions, including time spent on cryptocurrency projects and government advisory roles, have turned Tesla into a political flashpoint. Analysts warn the brand has taken a hit, particularly among younger and more progressive consumers, many of whom once viewed Tesla as the future of sustainable mobility.
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Barclays warned that Tesla is now facing a potential decline in vehicle volumes for the year, revising down its price target and projecting profit margins will remain under pressure. Wedbush described the current situation as a “Code Red” for Musk, citing growing damage to the brand and a clear need for the company to refocus its narrative.

Investors are now looking to Tuesday’s earnings call for answers. Expectations include updates on the long-promised low-cost Tesla model, timelines for the robotaxi platform, and signals that Musk will re-centre his efforts on core operations. With demand softening and competitors gaining ground, Tesla’s next moves could determine whether 2025 is a temporary dip — or the start of a deeper slide.