Tesla: Q1 Delivery Miss Means Nothing, Stock Remains A Strong Buy

Summary

• Tesla, Inc. delivered 336,681 EVs in Q1 2025, showing a year-over-year drop of 13%. Q1 deliveries also missed the consensus of 390,000 EVs by a wide margin.
• Despite weak deliveries, Tesla is set to ramp up deliveries in FY 2025 due to the launch of a new low-cost EV, the stripped-down Tesla Model Y.
• Chinese EV makers saw impressive year-over-year growth in March and Q1 as well, including BYD, XPEV, NIO and Li Auto.
• XPeng did especially well with delivery growth of more than 330% in Q1'25.
• TSLA stock is valued at a price-to-revenue ratio of 6.6X, and faces short-term risks like declining deliveries and margin pressure, but the long-term outlook remains positive.

Sky_Blue

Tesla, Inc. (NASDAQ:TSLA) submitted its quarterly delivery achievements for the first-quarter of FY 2025 on Wednesday, which were highly anticipated given that CEO Elon Musk, and by extension Tesla, have dominated the news lately. In the first-quarter, Tesla delivered a

Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSLA, NIO, LI, BYD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.