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Tesla Reports 71% Profit Drop as Elon Musk Recommits to Company Leadership

Musk announces reduced involvement in Trump administration's DOGE initiative, while Tesla navigates declining sales, tariff impacts, and brand challenges.

Overview

  • Tesla's Q1 2025 net income fell 71% to $409 million, with revenue declining 9% year-over-year to $19.3 billion.
  • Vehicle deliveries dropped 13% to 336,681 units, missing Wall Street expectations and reflecting weakened demand.
  • Elon Musk confirmed he will significantly reduce his time spent on the Department of Government Efficiency (DOGE) starting in May to focus more on Tesla operations.
  • The company paused its long-term growth forecast due to uncertainty from evolving trade policies and political backlash, including tariffs and protests tied to Musk's political affiliations.
  • Tesla remains on track to launch new affordable EV models in H1 2025 and roll out a robotaxi service by mid-year, while its energy business grew 67% during the quarter.