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- Tesla reported $13.97 billion in automotive revenue, marking a 30% quarterly decline and a 19.62% annual drop, signaling mounting challenges amid shifting industry conditions and economic pressures
- Net income fell an astonishing 71%, missing analyst expectations and sparking concerns about Tesla’s financial health as global EV demand softens and political ties raise questions about long-term market strategy
- Elon Musk promised to shift focus back to Tesla, scaling down time spent on DOGE and government affairs, as boycotts and declining European sales put additional pressure on Tesla’s performance
Electric vehicle company Tesla announced today its first-quarter earnings report for the year 2025. The results, however, were far from optimistic.
Tesla’s total automotive revenue came in at $13,967 million in revenue, down by nearly 30% from the previous quarter. When compared to the same period last year, the company—the company is still at a loss of 19.62%.
The EV producer reported $19,335 million in total revenue in Q1, down 9% year-over-year and a stark disparity to the $25,707 million in revenue reported in Q4 2024.
Even more worrisome is the fact that Tesla saw a decrease of 71% in sales during the first three months of the year. While the reason for this sharp decline is uncertain—in all likelihood—the company’s affinity to the Trump administration may have something to do with it.
Elon Musk Promises To Focus on Tesla
The impact of the revenue report drove Elon Musk to change course. During Tesla’s earnings call, the multi-billionaire stated that his “time allocation to DOGE will drop significantly” after May.
However, Musk is not stepping down from the Department. He mentioned that he believes he will continue overseeing DOGE for the remainder of Trump’s term, while promising to keep government affairs capped at “a day or two per week”.
Tesla was at the receiving end of a boycott during the first quarter, as people all around the world protested Musk’s actions as head of the Department of Government Efficiency. The company saw a significant drop in registrations in Europe during the first quarter, as reported by Statista.
As one of the largest market for electric vehicles in the world, Europe represents a substantial part of Tesla’s sales. Despite this, sales dropped in nearly all European countries, with an astounding 62.2% drop in new registrations in Germany.
With that said—Model Y and Model 3 are still the two-best selling electric vehicles in the continent.
