(The Guardian) Tesla profits drop 71% as carmaker warns ‘political sentiment’ could impact future demand
Elon Musk’s electric car company Tesla reported that its first-quarter profits plunged by more than two-thirds amid a backlash that has hurt sales and sent its stock plunging. The Austin, Texas, company told shareholders of Tuesday that quarterly profits fell by 71% to to $409m. That was a sharp decline from profits of $1.4bn for the same quarter in 2024, before the company’s CEO endorsed and campaigned for Donald Trump.
The company also had a 9% drop in revenue year over year in the first quarter of 2025, my colleague Johana Bhuiyan reports. Company sales plummeted in the first three months of the year. The company suffered a 13% drop in sales, making it the company’s worst quarter since 2022.
Analysts attribute the company’s overall difficulties to a number of factors, but ultimately conclude Elon Musk’s role in the White House has caused a branding crisis for Tesla. The company is at a major crossroads, analysts say, that will only be remedied if Musk leaves his role in the so-called “department of government efficiency”, nicknamed Doge, and returns to Tesla as CEO full time.
Musk is scheduled to leave Doge on 30 May, a strict 130-day cap on his service as a special government employee.
In addition to a drop in sales, a 50% dip in share prices, existing Tesla owners are looking to sell their vehicles in droves, Teslas have been vandalized across the country and in response to ongoing protests of the automaker, the Vancouver International Auto show removed the electronic carmaker from its March lineup. The company also recalled 46,000 Cybertrucks – nearly all that had been sold.
www.theguardian.com
Elon Musk’s electric car company Tesla reported that its first-quarter profits plunged by more than two-thirds amid a backlash that has hurt sales and sent its stock plunging. The Austin, Texas, company told shareholders of Tuesday that quarterly profits fell by 71% to to $409m. That was a sharp decline from profits of $1.4bn for the same quarter in 2024, before the company’s CEO endorsed and campaigned for Donald Trump.
The company also had a 9% drop in revenue year over year in the first quarter of 2025, my colleague Johana Bhuiyan reports. Company sales plummeted in the first three months of the year. The company suffered a 13% drop in sales, making it the company’s worst quarter since 2022.
Analysts attribute the company’s overall difficulties to a number of factors, but ultimately conclude Elon Musk’s role in the White House has caused a branding crisis for Tesla. The company is at a major crossroads, analysts say, that will only be remedied if Musk leaves his role in the so-called “department of government efficiency”, nicknamed Doge, and returns to Tesla as CEO full time.
Musk is scheduled to leave Doge on 30 May, a strict 130-day cap on his service as a special government employee.
In addition to a drop in sales, a 50% dip in share prices, existing Tesla owners are looking to sell their vehicles in droves, Teslas have been vandalized across the country and in response to ongoing protests of the automaker, the Vancouver International Auto show removed the electronic carmaker from its March lineup. The company also recalled 46,000 Cybertrucks – nearly all that had been sold.
Elon Musk to pull back in Doge role starting May amid 71% dip in Tesla profits
CEO to pare back White House work to one to two days weekly as analysts say role has caused branding crisis
www.theguardian.com
