Tesla experienced a significant decline in profits during the first quarter, with net income dropping 71% year-over-year due to weak sales figures. The company reported a net income of $409 million on $19.3 billion in revenue after delivering nearly 337,000 electric vehicles (EVs). Tesla attributed part of its financial shortfall to the sale of $595 million in zero-emissions tax credits, which helped prevent a net loss. Additionally, Tesla warned shareholders about potential impacts from ongoing trade tensions and shifting political sentiment, particularly concerning tariffs imposed by the U.S. government. Despite these challenges, Tesla remains committed to introducing more affordable EV models by the first half of 2025, though delays have been rumored. The company also faces backlash over CEO Elon Musk’s political affiliations and his involvement in controversial projects like the Robotaxi service.
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