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Tesla, Inc. (TSLA) saw its shares plunge by 30% in 2025, significantly underperforming the S&P 500. The company’s recent volatility has been exacerbated by CEO Elon Musk’s comments about the Trump administration.
In Q1, Tesla reported revenue of $19.3 billion, marking a 9% year-over-year decline, and an adjusted EPS of $0.27, down 50% compared to the same period last year. The company delivered approximately 337,000 electric vehicles (EVs) and produced nearly 363,000. However, gross margins contracted to 16.3%, down from 17.4% in the prior year.
Analysts have issued downward revisions for Tesla’s earnings expectations, giving the stock a Zacks Rank of #5 (Strong Sell), indicating increased market volatility driven by the company’s politically sensitive operations and competitive pressures.
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