Tesla, Inc. (TSLA.US) first quarter financial report is far from optimistic, analysts are shifting their focus to 2026.

Tesla, Inc. (TSLA.US) will release its first quarter 2025 financial report after the market closes on Tuesday, and will hold a highly anticipated conference call. Analysts expect its revenue to increase slightly by 2% year-over-year to around $21.5 billion, but earnings per share are expected to decline from $0.45 in the same period last year to $0.42, a significant decrease from the previous quarter's $0.73. The decline in profits is mainly due to a sharp drop in car deliveries during the quarter to 336,681 vehicles, the worst performance in over two years. Wedbush Securities analyst Dan Ives stated that if Elon Musk indicates that he will stay with DOGE for the long term, Tesla, Inc. and Musk will face a "red alert" situation due to the damage to the brand. Ives emphasized that since President Trump returned to the White House and Musk joined the government, Tesla, Inc.'s stock has been affected by continued brand damage, "terrible" first quarter delivery numbers, and high tariffs impacting Tesla, Inc.'s new vehicle plans and supply chain costs. However, Ives' team remains optimistic about Tesla, Inc., believing that the electric vehicle giant is one of the world's most disruptive technology companies alongside NVIDIA Corporation. They see huge valuation potential in its innovation, engineering scale, autonomous driving roadmap, and Siasun Robot & Automation business. Analysts Gene Munster and Brian Beck from Deepwater Asset Management are also optimistic in the long term, thinking that 2026 will be a turning point for Tesla, Inc. The company predicts a 9% decrease in deliveries in 2025, but expects a rebound in 2026 with a 35% growth in deliveries, thanks to brand recovery, increasing demand for electric vehicles, and more affordable models. Munster and Beck wrote: "In the long run, the investment prospects of Tesla, Inc. still depend on its ability to solve the problem of autonomous driving and expand the scale of Siasun Robot & Automation technology." Analysts have significantly lowered their expectations for Tesla, Inc.'s 2025 delivery volume from 2 million vehicles to 1.65 million, potentially missing annual targets for the second consecutive year. However, if the financial report call signals the following, the stock price may receive a boost: Musk's commitment to return to the core business of Tesla, Inc., more information on the rollout schedule and specific details of the Austin fully autonomous driving (FSD) feature, and the production timeline of the new low-cost model. It is worth noting that the options market is betting on a 10% fluctuation in Tesla, Inc.'s stock price after the financial report is released.