Tesla CEO Elon Musk has put on a hat, “Trump Was Right About Everything!”, and he is a trade representative for US President Jamison Greer and Central Intelligence Director John Ratcliffe, who will attend a Cabinet meeting held at the White House in Washington, DC, on March 24, 2025.
Carlos Barrier | Reuters
Tesla reported top-line and bottom-line errors in its first quarter revenue report on Tuesday.
Here are some important figures compared to LSEG expectations:
Earnings per share: 27 cents adjusted vs. 39 cents estimated recording: 193.4 billion vs. 211.1 billion
Total revenues were slid 9% from $21.3 billion the previous year. Automotive revenue fell 20% to $14 billion, down from $17.4 billion in the same period last year.
Tesla said one reason for the decline was that the line would need to be updated at four vehicle factories to begin creating a refreshed version of the popular Model Y SUV. The company also pointed out lowering average selling prices and sales incentives as a resistance to revenue and profits.
Net income plummeted from 71% to $409 million, or 12 cents per share, from $1.39 billion or 41 cents a year ago.
It was a cruel start to the year for Tesla. CEO Elon Musk has spent a lot of his time at President Donald Trump’s White House, overseeing efforts to dramatically reduce the federal government. The president’s drastic tariff plans have led to concerns that the costs of parts and materials essential to the production of electric vehicles, such as manufacturing equipment, automotive glass, printed circuit boards, and battery cells, would increase the cost of parts and materials essential to the production of electric vehicles.
Tesla shares have fallen 41% so far in 2025, experiencing the worst quarterly decline since 2022 during the period that ended in March. Stocks were largely unchanged in the extension transaction on Tuesday.
The company said it will “revisit the 2025 guidance with a second quarter update,” as it adjourns this year’s promising growth.
On the shareholder deck, Tesla warned investors that “trade policies, which are rapidly evolving uncertainty in the automotive and energy markets, continue to increase as they have a negative impact on the global supply chain and cost structure of Tesla and our fellow members.” The company said this “dynamic” and “change in political sentiment” could have a meaningful short-term impact on product demand.
Tesla faces widespread protests in the US and Europe, where Musk actively supports Germany’s far-right AFD party. Earlier this month, the company reported a 13% decline in first quarter delivery to 336,681 from a year ago.
Tesla has struggled to keep pace with its low-cost competitors in China, and is currently behind in the US in the Robotaxi market, which is dominated by Alphabet’s Waymo. The company has pledged to launch its first driverless ride hailing offering in June in Austin, Texas.
The company on Tuesday reassured investors that by that point it was on track for a “pilot launch” in Austin, and this year it would begin building humanoid robots on its pilot production line in Fremont, California.
Quarterly operating profit was $400 million, down 66% from $1.17 billion the previous year, a 2.1% operating margin. The company cited the increase in costs associated with artificial intelligence projects as one factor in the decline.
The company would have lost money in car sales during the quarter without environmental regulations credit. Revenue from credits received by Tesla in sales of fully electric vehicles increased to $595 million from $432 million in the same period last year.
Energy generation and storage revenues rose 67% from $1.64 billion a year ago. The company said the growth of AI infrastructure “creates distinctive opportunities for energy storage products to stabilize the grid, shift energy when needed most, and provide additional power capacity.”
Tesla uses foreign suppliers for its energy business. “Increasing tariffs could cause short-term impacts on market volatility and supply and demand,” the company said.
Tesla calls with analysts are expected to begin at 5:30pm ET.
Watch: Tariff Fallout Hits Automakers
