Tesla(TSLA) The Motley Fool·2025-04-25 01:47Core Insights - Tesla's first-quarter results disappointed investors, with deliveries down 13% year over year, leading to expected declines in revenue and earnings per share [1] - Automotive revenue fell by 20%, and the operating margin decreased significantly, prompting a Wall Street analyst to lower the price target for Tesla stock by 325 per share [2] - Despite the disappointing results, the lowered price target still suggests a 30% upside potential, indicating that investors may still consider buying Tesla stock [3] Future Prospects - Tesla is on track to begin production of new, lower-priced vehicle models in the first half of the year, which could provide more details to investors within the next two months [4] - CEO Elon Musk announced that the company aims to achieve fully autonomous paid rides in Austin by June, potentially opening a new revenue stream and paving the way for a fleet of driverless robotaxi vehicles [5] Risks and Challenges - The company has withdrawn its annual deliveries outlook following the poor first-quarter performance, raising concerns about future product launches [6] - The anticipated fully autonomous vehicles will initially be Model Y EVs, with the Cybercab expected to launch next year, which may delay competition with ride-sharing companies [6] - Investors are advised to remain cautious due to previous delays in product launches, suggesting that a small position in Tesla stock may be prudent [7]