Elon Musk said he will devote more time to Tesla From May, after the company declared a sharp drop in the benefit of the first quarter. The company has faced angry demonstrations against Musk’s management of a federal government’s jobs cup group that has divided the country.
Tesla, based in Austin, Texas, said Tuesday that quarterly profits fell 71% to $ 409 million, or 12 cents per share. This is much lower than the estimates of analysts. Tesla’s revenues dropped from 9% to 19.3 billion dollars during the period from January to March, below Wall Street forecasts.
The disappointing results arise as the company has trouble selling cars to angry consumers against the role of Musk in the Trump administration. Musk also publicly supported far -right politicians in Europe and also alienated potential buyers.
Some Tesla investors complained that Musk was too distracted by its role at the Ministry of Government efficiency, or DOGE, to effectively manage Tesla.
“It’s a big step in the right direction,” said Dan Ives de Wedbush Securities, referring to the commitment of Musk’s time. “Investors wanted to see him go to Tesla.”
Tesla’s stock fell by more than 40% this year, but increased by more than 3% in trade after working hours.
Morningstar analyst Seth Goldstein said that previous reports on diving sales that had landed the stock made the results almost predictable.
Get national news
For news that has an impact on Canada and worldwide, register for the safeguarding of news alerts that are delivered to you directly when they occur.
“They are not particularly surprising since deliveries were down,” said Goldstein, adding that the company still generates money. “It was good to see positive cash flows.”
The company generated $ 2.2 billion in operating cash against $ 242 million a year earlier.
Tesla investors will carefully listen to updates on several strategic initiatives. The company should deploy a cheaper version of its best -selling vehicle, the SUV Model later in the year. Tesla also said that she was planning to start a driver -free Robotaxi service in Austin, Texas, in June.
Its gross margins closely monitored, a profit measure for each dollar income fell to 16.3% against 17.4%.
The company which has once dominated electric vehicles also faces fierce competition for the first time.
Earlier this year, the manufacturer of Chinese electric vehicles Byd announced that it had developed an electric battery load system which can fully supply a vehicle in a few minutes. And the European rivals of Tesla began to offer new models with advanced technology that makes their real alternative, just as popular opinion in Europe has turned against Musk.
Investors expect Tesla to be less injured by Trump administration prices than most American automotive companies because it manufactures most of its American cars at the national level. But Tesla will not be completely unscathed. He gets in some materials for his stranger vehicles which will now face import taxes.
Tesla has warned that prices will also access its energy storage activity.
“While the current tariff landscape will have a relatively greater impact on our energy activity compared to the automobile,” said the company, “we take measures to stabilize the long -term activity and focus on maintaining its health.”
Reprisals from China will also harm Tesla. The company was forced earlier this month to stop taking orders from the continent for two models, its S and Model X models. It manufactures model Y and model 3 for the Chinese market in its factory in Shanghai.
The sales company for “regulatory credits” to other car manufacturers who are not below emission standards have increased the results of the quarter.
The company generated $ 595 million compared to credit sales, compared to $ 442 million a year ago.
& Copy 2025 the Canadian press