Investors to Spotlight Tesla’s Affordable EV and Robotaxi Plans as the EV Maker Releases Q1 Report

Investors will be eager to know about Tesla’s affordable EV and robotaxi plans as the company releases its earnings report on April 22, Yahoo Finance reported. Tesla investors are also expected to question CEO Elon Musk about Tesla’s affordable car launch date and whether the robotaxi plan is on course.

Delayed Production

Investors have pegged their hopes on Tesla’s affordable cars that the EV manufacturer committed to launch by June this year. The launch of these cars was expected to revitalize dipping Tesla sales that have been affected by increasing competition.

The drop in Tesla EV sales have also suffered due to retaliation to Musk’s alignment with far-right politics. Reduced sales will affect Tesla’s profit margins significantly. Wall Street expects gross margins for the company to hit a new low in quarter one. This trend could continue as Tesla offers incentives to increase sales.

Tesla’s affordable EVs will be a lower version of its Model Y SUV manufactured in the US. However, reports indicate that production of the low-priced vehicles has been delayed for months now. The EV maker expects to use current production lines and vehicle platforms to produce low-cost car versions at lower capital costs. But details about this strategy remain scanty. Investors will be expecting a detailed update on Tesla’s low-cost EV production.
“The low-cost Tesla might be the one thing that could turn momentum around. If it ends up just being a bare bones version of the Model Y, we think the street could be disappointed. Elon really needs to hit the deadline on this and hit the vehicle itself,” GraniteShares CEO Will Rhind said.

Chinese-Driven Competition

In addition to the challenge of reduced demand for its aging line-up, the EV manufacturer is contending with Chinese manufactured EVs in Europe and China. Last year, Musk launched Tesla robotaxis and AI to stay ahead of the competition. The Tesla CEO committed to provide public ride-hailing services in Texas by June 2025 and then in California later.

Tesla will be reporting its earnings on the backdrop of failed promises. For close to a decade, Musk has promised to deliver self-driving cars in the US and failed. The company is also facing safety litigation risks associated with deployment of driverless technology that the government has not approved.
Although the company has been pursuing regulatory approvals to enable it launch robotaxi services, production of its anticipated Cybercab could be disrupted by the tariffs introduced by the Trump administration on China. Tesla imports some components of the Cybercab from China.

Tesla Investor Concerns

Tesla’s challenges are compounded by rising concerns about the time that Must is currently spending on running the EV manufacturing company. Their concerns emanate from his involvement in the Trump administration where he leads the Department of Government Efficiency (DOGE).

Musk’s actions at the DOGE have led to federal job cuts. These actions have resulted in protests and vandalism of Tesla showrooms, increased trade-ins, and caused the company’s brand value to dip. This year alone, Tesla stocks have dropped by 40%, equivalent to $500 billion of the company’s market value. Tesla sales dropped across states, especially in California.

“If Musk can start refocusing his efforts on restoring the Tesla brand, I do believe that this brand damage can be minimized. It’s important that Musk limit his political commentary going forward and start focusing on FSD, robotaxis and Optimus,” Chief Strategist at Stock Trader Network Dennis Dick said.

Analysts expect Tesla’s revenue to hit the $21.35 billion mark despite the drop in quarter one deliveries. They attribute this performance to rising sales of automotive regulatory systems and credits that generate and store solar energy.

“We expect delivery volume will take priority over auto gross margin, implying more incentives could be seen. Offers for free charging or autonomy features could impact profitability,” Edison Yu, a Deutsche Bank Analyst said.