Tesla announced a net profit of $ 409 million for the first quarter of 2025, a drop of 71 % compared to the same period last year. This underperformance is explained by the drop in world sales, the maturity of current products and the political activism of Elon Musk, according to several analysts.
Total quarter incomes dropped by 9.2 % to 19.3 billion USD. Automotive income has plummeted 20 %, stood at USD 12.9 billion.
Save by carbon credits
Tesla generated $ 595 million by selling emission credits to other car manufacturers, an increase compared to 442 million from the previous year. Without these credits, Tesla would have recorded a net loss for the period from January to March.
Elon Musk reduces his government involvement
During the call to investors, Elon Musk said that he was going to spend less time to his government functions, in particular as advisor to Donald Trump and head of the Department of Government efficiency (DOGE). He will continue to devote “one or two days a week”, but “from May, this involvement will decrease significantly”.
Musk says he defends free trade in his discussions with Trump, despite the heavy taxes imposed on cars and parts imported from Mexico and Canada. However, he recognizes that his political commitment has caused a negative reaction.
Downward price, falling sales
Tesla attributes the drop in its profits to the reduction in vehicle prices, the drop in deliveries (-13 %, or 336,681 units) and an increase in operating expenses. Model deliveries notably suffered from the transition to an updated version of this model, under production in the factories of California, Texas, Germany and China.
Future projects: Robotaxi and affordable models
Tesla maintains its deadlines for its key projects which include a new range of more accessible vehicles scheduled for the beginning of 2026, as well as cybercab, an autonomous robotaxi using a revolutionary production method, with a start -up of large -scale production in 2026.
The pilot launch of a Robotaxi service in Austin, Texas, is still scheduled for June. Musk hopes for a national deployment if the experience is conclusive. He also claims that Tesla’s current vehicles could become completely autonomous via a software update before the end of the year in certain American cities.
Wall Street relieved, despite everything
Analysts expected disastrous results, but the increase of 67 % of energy -related income has amortized the fall. The gross profit stood at 16.3 %, above forecasts (15.8 %), although down compared to the 17.4 %of last year.
Tesla’s action climbed 5 % after the closing of the markets, carried by these results deemed “less bad than expected”.
Musk’s reputation in question
Some analysts, including Dan Ives, urge Musk to withdraw from his government functions to focus again on Tesla. According to him, the image of the brand has suffered from its political positions on X (ex-owner) and its presence within the Trump administration.
Original Auto123 content.
