Is Tesla Still the EV King?
And in 2025, shares have been volatile, down 25% overall with big price swings.
Notably, the stock currently sports an unfavorable Zacks Rank #5 (Strong Sell), with analysts revising their EPS expectations negatively across the board in a big way over recent months.
The downward revisions paint a challenging picture for TSLA's share performance in the near term, and investors can expect a heightened level of volatility here given the stock's historical nature.
With that said, let's take a closer look at its latest set of quarterly results and a big competitor, Rivian Automotive RIVN.
Tesla Faces Sales Decline
Tesla reported Q1 revenue of $19.3 billion and adjusted EPS of $0.27 in its latest release, reflecting year-over-year declines of 9% and 50%, respectively. Still, results from Tesla's Energy Generation & Storage segment reflected some positivity, with sales climbing 67% year-over-year to $2.7 billion.
Below is a chart illustrating the company's sales on a quarterly basis.
Concerning EV production/deliveries, Tesla delivered roughly 337k EVs and produced nearly 363k throughout the period.
While the EV numbers are important, another critical aspect of the release was the margin picture, with the company's gross margin contracting to 16.3% vs. a 17.4% print in the same period last year. Please note that the margins chart below is calculated on a trailing twelve-month basis.
The crunched profitability has been a big headwind for the stock, regularly dictating post-earnings price movements as of late.
Rivian Sees Upward EPS Revisions
Rivian shares have been much stronger in 2025 so far, gaining roughly 2% compared to Tesla's 25% decline. Its latest set of quarterly results was primarily positive, with gross profit of $206 million reflecting a quarterly record.
Notably, the company produced roughly 14.6k vehicles throughout the period, delivering 8.6k. While the numbers are miniscule compared to that of Tesla, the results remained in-line with management's previous guidance, a critical hurdle to clear for any EV player.
It's worth noting here that while Rivian has 100% US vehicle manufacturing and sources most materials (excluding cells) in the US, it's still not immune to the impacts of the current global trade and economic environment. The company revised its current-year guidance concerning vehicle deliveries as a result, now expecting FY25 deliveries in a range of 40-60k.
The earnings outlook for Rivian remains bullish, with the current Zacks Consensus EPS estimate of -$2.49 up 14% over the last several months. The company has enjoyed positive revisions across nearly all timeframes, as shown below.
Putting Everything Together
Tesla TSLA shares have been big-time winners over the past decade for many, but recent performance has undoubtedly left a sour taste in many mouths.
The recent profitability crunch and slowing sales growth are driving forces behind the stock's poor performance, with competition also quickly becoming fierce. Rivian RIVN shares have been much stronger in 2025, with the company's EPS outlook much more favorable.
Given Tesla's current Zacks Rank #5 (Strong Sell) rating, investors would be better off waiting on positive EPS revisions, which would signal a bullish turnaround in sentiment.
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