Tesla will post its financial results for the first quarter of 2025 after market close on Tuesday, April 22, 2025. Tesla's Q1 revenue is expected to be $21.571 billion, adjusted net income will be $1.600 billion, and adjusted EPS will be $0.447, according to Bloomberg's consistent expectations.

Tesla’s upcoming earnings report is expected to drive significant volatility, given the stock’s 40% YTD decline, mixed analyst sentiment, and elevated short interest. Let’s dive into the potential sscenarios and related options strategies with Tesla stock.

Profit Margin Is A Key Metric

One of the most critical metrics investors will be monitoring is Tesla's automotive gross margin.

Profitability in the core automotive segment is expected to remain under pressure due to factory retooling for the new Model Y, increased discounts, and incentives that have squeezed margins. Gross margins from automotive sales are projected to fall to about 15.8%, which is a notable drop from last year and far off the long-term goal of +25%.

Of course, CEO Elon Musk's political activity and the resulting brand backlash are also factors in the softer global demand and margin crunch, compounding the impact of rising competition and macroeconomic headwinds such as tariffs and slowing EV adoption.

Vehicle Production and Delivery Challenges

Tesla reported disappointing vehicle production and deliveries on April 2. The company produced 362,615 vehicles and delivered 336,681 in the first three months of 2025. Relative to the prior-year period, production was down 16%, and deliveries were down 13%. The numbers, which were below analyst expectations, describe Tesla's worst quarter in three years.

These figures signal a potential slowdown in Tesla's growth trajectory and have contributed to investor concerns about the company's near-term prospects.

Tesla Bull Calls "Code Red" Saying Musk Needs to Leave DOGE

Wedbush Securities analyst Dan Ives is sounding another loud alarm bell for Tesla Inc., warning that CEO Elon Musk faces his own fork in the road as the electric vehicle maker prepares to report first quarter earnings Tuesday.

Two weeks ago, Ives slashed his price target for the stock by 43%, citing a brand crisis created by Musk and US President Donald Trump’s trade policies. Ives’ biggest concern has been the potential for Tesla to get caught up in the backlash against Trump’s tariff policies in China, where the company generated more than a fifth of its revenue last year.

Ives said he remains bullish on Tesla, maintaining an outperform rating and calling it one of the “most disruptive technology companies on the globe over the coming years.” Yet he said Tesla needs its “most important asset” — Musk — back at the company full time.

Option Strategies

1. Bear Put Spread

• Structure: Buy a higher-strike Put + Sell a lower-strike Put.

• Example: Buy $245 Put + Sell $235 Put.

  $TSLA Vertical 250425 235.0P/245.0P$

• Objective: Capitalize on downside momentum.

Rationale:

• Short-term bearish sentiment due to declining deliveries.

  

2. Bull Call Spread

• Structure: Buy a lower-strike Call + Sell a higher-strike Call.

• Example: Buy $250 Call + Sell $260 Call.

  $TSLA Vertical 250425 250.0C/260.0C$

• Objective: Leverage upside potential at reduced cost.

Rationale:

• Mean analyst target price ($306.77) implies ~22% upside from recent levels.

• Potential positive catalysts: Robotaxi updates or cost-cutting progress.