Tesla's latest earnings report delivered a double disappointment, with revenue and profits falling short of expectations.
Revenue declined by 9% year-over-year to $19.3B, and operating income plummeted 66% to $400M.
Automotive revenue dropped 21%, which caused the company to pull back on its 2025 growth forecast.
Despite these setbacks, Tesla's stock surged nearly 9% to an intraday high of $259.45.
This rally was fueled by CEO Elon Musk's announcement to reduce his involvement with the White House's Department of Government Efficiency (DOGE) and refocus on Tesla.
Investors were also encouraged by updates on the company's progress in autonomous driving and robotics, including the upcoming launch of a robotaxi service and affordable vehicle models.
While the market remains cautious due to ongoing challenges like tariffs and brand perception issues, Musk's renewed commitment to Tesla and its innovation pipeline has boosted the stock price.
So what else did we learn from yesterday's earnings reactions? Let’s dive into the details.
Here are the latest earnings reports from the S&P 500 👇
*Click the image to enlarge it
Amphenol $APH had the best reaction score after reporting a double beat.
The company reported revenues of $4.81B, versus the $4.30B estimate, and earnings per share of $0.63, versus the $0.52 estimate.
Lennox International $LII had the worst reaction score after reporting a double beat.
The company reported revenues of $1.07B, versus the $1.02B estimate, and earnings per share of $3.37, versus the $3.27 estimate.
Now let's dive into the data and talk about what happened with these reports 👇
PM had its 5th consecutive positive earnings reaction:
Philip Morris rallied 2.4% after this earnings report, and here's why:
Organic net revenues increased by 10.2% year-over-year (crazy good for a tobacco company!).
Their expansion plans are coming to fruition much faster than expected.
The management team raised guidance across the board.
This company is on fire right now, and the market loves it...
The stock reached a fresh all-time high on the heels of this earnings report.
The price closed above a key Fibonacci extension level for the first time. We think this could be the beginning of a new leg higher.
If PM is above 165, the path of least resistance is higher for the foreseeable future.
TSLA had its 3rd consecutive positive earnings reaction:
Tesla rallied over 5% after this earnings report, and here's why:
The Energy Generation and Storage segment grew revenues by an impressive 67% year-over-year.
Free cash flow increased to $664M, a 126% Y/Y increase.
They reiterated their expectation to begin production of cheaper models in June this year.
We love it when stocks react positively to double misses. This is an incredibly bullish signal.
The stock closed above a key level of interest at the 61.8% retracement of the prior uptrend. We want to give the bulls the benefit of the doubt that they can hold this level.
If TSLA is above 250, the path of least resistance will shift from sideways to higher.
On the flip side, if this level doesn't hold, the price will likely retest its 2023 low near 100.
Thank you for reading.
- The Beat Report Team
PS: Markets move fast during earnings season — Kenny moves faster. Join him Thursday at 4 p.m. ET to see how one VWAP signal turns volatility into morning profits. Register for the live session.
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