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6d ago

Tesla Reports 71% Profit Drop in Q1 2025, Citing Political and Economic Pressures

The EV maker missed revenue and earnings expectations as vehicle deliveries hit a three-year low and CEO Elon Musk faces backlash over his political role.

FILE - Tesla vehicles line a parking lot at the company's Fremont, Calif., factory on Sept. 18, 2023. (AP Photo/Noah Berger, file)
President Trump and Elon Musk, Tesla’s chief executive and presidential adviser, in a Tesla car at the White House in March

Overview

  • Tesla's Q1 2025 net income fell to $409 million, a 71% year-over-year decline, with revenue down 9.4% to $19.3 billion, missing Wall Street estimates.
  • Automotive revenue dropped 20% compared to Q1 2024, as global vehicle deliveries fell 13% to 336,681 units, Tesla's lowest since 2022.
  • The company warned investors of risks from evolving trade policies, supply chain challenges, and changing political sentiment that could impact demand.
  • CEO Elon Musk's advisory role in the Trump administration has sparked protests and brand backlash, contributing to declining sales and a 40% year-to-date stock drop.
  • Tesla reiterated plans to launch a lower-cost Model Y and a robotaxi service in Austin, Texas, by June, though analysts remain skeptical about execution timelines.