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Interpreting Tesla (TSLA) International Revenue Trends

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Have you evaluated the performance of Tesla's (TSLA - Free Report) international operations during the quarter that concluded in March 2025? Considering the extensive worldwide presence of this electric car maker, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

Our review of TSLA's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The company's total revenue for the quarter stood at $19.34 billion, declining 9.2% year over year. Now, let's delve into TSLA's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Unveiling Trends in TSLA's International Revenues

During the quarter, Other International contributed $4.7 billion in revenue, making up 24.30% of the total revenue. When compared to the consensus estimate of $7.08 billion, this meant a surprise of -33.65%. Looking back, Other International contributed $7.53 billion, or 29.30%, in the previous quarter, and $6.95 billion, or 32.61%, in the same quarter of the previous year.

China generated $4.3 billion in revenues for the company in the last quarter, constituting 22.25% of the total. This represented a surprise of -8.57% compared to the $4.71 billion projected by Wall Street analysts. Comparatively, in the previous quarter, China accounted for $6.05 billion (23.54%), and in the year-ago quarter, it contributed $4.59 billion (21.56%) to the total revenue.

Anticipated Revenues in Overseas Markets

Wall Street analysts expect Tesla to report a total revenue of $23.65 billion in the current fiscal quarter, which suggests a decline of 7.2% from the prior-year quarter. Revenue shares from Other International and China are predicted to be 33.2% and 22.3%, corresponding to amounts of $7.9 billion and $5.3 billion, respectively.

For the entire year, the company's total revenue is forecasted to be $98.89 billion, which is an improvement of 1.2% from the previous year. The revenue contributions from different regions are expected as follows: Other International will contribute 33.4% ($33.25 billion) and China 22.7% ($22.64 billion) to the total revenue.

Closing Remarks

Tesla's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.

Tesla, bearing a Zacks Rank #5 (Strong Sell), is expected to underperform the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Reviewing Tesla's Recent Stock Price Trends

The stock has increased by 26.2% over the past month compared to the 9.1% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Auto-Tires-Trucks sector, which includes Tesla, has increased 20.7% during this time frame. Over the past three months, the company's shares have experienced a loss of 10.5% relative to the S&P 500's 3.1% decline. Throughout this period, the sector overall has witnessed a 2.3% decrease.

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