Tesla’s revenue and profits tank amid political chaos
1 min read
Summary
Tesla’s first quarter results were below expectations, with the company’s revenue slipping to 13.9bn,downfrom17.4bn, while profits fell by 71%
The company said it faced challenges from “changing political sentiment” and the “adverse impacts of evolving trade policy”, which were hitting its automotive and energy businesses
The profit slide was also attributed to a drop in sales in China, higher borrowing costs and a stronger dollar, as well as falling prices for high-end vehicles and the sale of fewer regulatory credits
Tesla’s Q1 profit was also boosted by the sale of $595m in regulatory credits, without which the company would have reported a year-on-year loss.
The company’s automotive revenue also fell by 20% YoY, while gross margins rose above expectations to 16.3%.
Despite the drop, Tesla has confirmed it’s still on track to release new affordable models in H1 2025, as demand for more affordable options is considered “critical”.