Zacks Investment Ideas feature highlights: Tesla and Alphabet

 For Immediate Release Chicago, IL – April 23, 2025– Today, Zacks Investment Ideas feature highlights Tesla TSLA and Alphabet GOOGLTesla Earnings: Revs & EPS Fall Short, Robotaxi Plans ProceedZacks Rank #4 (Sell) stock Tesla reported Q1 earnings Tuesday after the market close. Thus far in 2025, Tesla shares have sliced lower by nearly 40% amid tariff concerns, a slowing electric vehicle market, macroeconomic weakness, and political backlash. The earnings details are as follows:· Earnings Per Share (EPS) of $0.27 missed Wall Street estimates of $0.43· Revenue of $19.3B, missed Wall Street estimates of $21.11B (-9% year-over-year)]· Gross margin of 16.3%In early after-hours trading, Tesla shares fluctuated and were mostly unchanged (though the stock historically tends to move based on CEO Elon Musk's comments). Before earnings, the options market implied a move of ~9%. The lower volatility is a welcome sign for TSLA investors who have had to endure extreme fluctuations. Overall, the lack of a market reaction is telling. As mentioned earlier, Tesla and its embattled leader, Elon Musk, have had the proverbial "kitchen sink" thrown at it. Though the numbers are poor compared to Tesla's long-term growth, I expected worse numbers.Tesla Will Revisit Guidance in Q2 UpdateUsually, when a company suspends guidance, it is a bearish catalyst that crushes shares. However, with the current global tariff chaos and uncertainty with Tesla's China business, investors are likely willing to give the company some leeway. Further, Tesla does not typically provide precise guidance; instead, it provides high-level, vague guidance.Tesla Remains on Track for Robotaxi Pilot Launch  Before the EPS release, whether Tesla would launch its pilot Robotaxi program in Austin, Texas, this summer was one of the biggest questions on investors' minds. With Alphabet's Waymo dominating the small but growing autonomous ride-hailing market, time is not on Tesla's side. In addition, Musk and Tesla are not known for their punctuality and many Wall Street analysts surmised that tariffs and other macroeconomic factors would delay the launch. Bulls can breathe a collective sigh of relief knowing that the long-awaited and potentially game-changing business is finally getting off the ground.Gross Margins Consistent with Q4One of the most significant surprises is that Tesla's gross margins of 16.3% were largely in line with Q4 margins.Plans for New Tesla Models on TrackDespite the many distractions, Tesla announced that it is on track to begin working on new vehicle models in the first half of 2025, including the long-anticipated, very inexpensive model.Tesla's Energy Business is on FireTesla's energy storage business was the star of the quarter, growing 67% year-over-year. Energy has been the most consistent and strongest growing side of the business.Bottom LineTesla's first-quarter earnings for 2025 revealed a significant miss on both EPS and revenue targets, coupled with a steady gross margin. Despite the negative headwinds of tariff concerns, a cooling EV market, and macroeconomic pressures, the market's muted reaction to results suggests a degree of baked-in pessimism.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks