Tesla’s first quarter saw revenue and non-GAAP earnings per share both surpass Wall Street’s expectations, with management attributing performance to rising vehicle deliveries—especially in Europe and Asia—and notable improvements in gross and operating margins. CFO Vaibhav Taneja highlighted a resurgence in demand in France, Germany, South Korea, and Japan, as well as the company’s largest Q1 order backlog in over two years. Taneja credited increased affordability of Tesla’s vehicles and higher paid Full Self-Driving (FSD) adoption, particularly through subscriptions. He also noted that improved automotive margins benefited from both operational efficiency and limited one-time items such as warranty true-downs.

Is now the time to buy TSLA? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Tesla’s Q1 Earnings Call

• William Stein (Truist): Asked about the structure and responsibilities of the Terafab chip fabrication project. CEO Elon Musk explained that Tesla is building a research fab in Texas, while SpaceX will manage the initial scaled-up phase, and Intel will provide advanced manufacturing technology.
• Pierre Ferragu (New Street): Questioned the high FSD subscription penetration in North America. Ashok Elluswamy, Head of Autopilot Software, confirmed that subscriber churn is declining and most Hardware 4 owners are actively using FSD.
• Dan Levy (Barclays): Inquired about the motivation behind Terafab and whether it aims for better chip economics. Musk clarified the primary goal is supply assurance and research, not supplier leverage.
• Mark Delaney (Goldman Sachs): Asked if new vehicle models are planned, referencing compact and family vehicles. Musk said the focus is on Cybercab and an eventual fully autonomous lineup; a new Roadster reveal is also approaching.
• Colin Langan (Wells Fargo): Probed on Robotaxi safety metrics and camera upgrades. Ashok Elluswamy and Lars Moravy detailed the use of various intervention and safety measures, and recent camera and software updates to address regulatory inquiries.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be watching (1) the pace of FSD and Robotaxi regulatory approvals and expansion in new geographies, (2) progress on battery pack capacity increases and alleviation of current production bottlenecks, and (3) the ramp-up and initial production output of new products such as Optimus, Cybercab, and the Semi. Execution in scaling AI infrastructure and realizing energy storage backlog will also serve as key indicators of Tesla’s operational momentum.

Tesla currently trades at $377.78, down from $387.51 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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