Quarterly Results of Tesla and Alphabet Q1 2025
Tesla: Stagnation Under Pressure
- Revenue: Expected $21.43 billion (almost stagnating year-over-year), after $21.3 billion in Q1 2024.
- Earnings per Share: Forecasted was $0.44, compared to $0.45 last year.
- Challenges: Significant decline in sales in Europe and North America as well as potential impacts of the trade conflict between the USA and China. The final numbers were still outstanding at the time of reporting, with previous quarters already showing declining margins.
Alphabet: Strong Outperformance of Expectations
- Revenue: Actual revenues of $90.2 billion significantly exceeded the forecast ($89.1 billion) – an increase of ~12% over the same quarter last year ($80.54 billion).
- Earnings per Share: At $2.81, the result was well above the expected $2.01 and marked a significant increase compared to last year ($1.89).
- Operating Margin: Expected was 32.26%, in reality, it was likely much higher due to the surprisingly strong profits.
Market Reactions
| Company | Market Reaction | Details |
|---|---|---|
| Tesla | Unclear | No price movements were noted at the time of the reports, previous releases, however, led to volatility. |
| Alphabet | +7–8% | After-hours jump of 5.2% following regular trading (+2.37%), driven by stability from Cloud/YouTube and a dividend increase. |
Importance for Investors
- (⚠️) Tesla Risks: Declining demand alongside a price war in the electric vehicle industry could further pressure margins.
- (✅) Alphabet Strengths: AI-driven advertising algorithms and cloud growth stabilize the business despite regulatory challenges.
- (📈) Tech Trends: While classic tech giants like Alphabet continue to expand, “green” tech companies like Tesla are struggling with cyclical risks.