Tesla (NASDAQ:TSLA) shares showed little movement following the release of its Q1 2025 earnings report. The company posted a 9.2% year-on-year revenue decline to $19.34 billion, falling short of the analysts’ forecast of $21.04 billion. GAAP net income was $0.12 per share — 58.4% below market expectations.

Tesla delivered 336,681 vehicles during the quarter, down 13% year on year and 8.1% below Wall Street estimates. The automotive segment took the biggest hit, bringing in $13.97 billion versus the expected $15.28 billion.

Other business units failed to offset the shortfall: energy revenue reached $2.73 billion (vs. $3.05 billion expected), while services brought in $2.64 billion (vs. $2.74 billion expected). Gross margin dropped to 16.3%, and operating margin fell to 2.1%.

Still, analysts point to potential growth drivers — the development of Full Self-Driving and robotaxi technologies, as well as the expansion of Tesla’s energy storage business, including Megapack sales. A single Megapack generates as much profit as around 100 vehicles.

Despite the weak results, Tesla remains a key market player, and analysts expect 12.8% revenue growth over the next 12 months. The stock closed flat at $238.01, suggesting investors had already priced in the underwhelming report.