Tesla reported that on Tuesday, April 22, net income fell 71% in the first quarter, lacking revenue expectations and raising new concerns about the company’s financial outlook. The electric car maker’s total revenue fell 9.4% year-on-year to $21.3 billion, about $1.8 billion Wall Street forecast. Tesla’s net income also fell sharply to $409 million, down from $1.39 billion a year ago.
The company’s flagship Model 3 and Model Y models saw a 16% drop in delivery compared to the previous year, while the “other model” category, including the highly anticipated Cybertruck, even dropped sharply by 24%.
Despite the challenging results, one of Tesla’s few highlights is its regulatory credit, which brings $595 million. Without these credits, the company will report losses, according to industry publication Electrek.
In investors’ letters, Tesla attributed part of its financial downturn to global political and economic uncertainty, suggesting changes in trade policy and political challenges have impacted supply chains and cost structures. “Uncertainty in the automotive and energy markets continues to increase as the adverse impact of rapidly developing trade policies on global supply chains and cost structures,” the company wrote.
CEO Elon Musk, who faces criticism for his political activity and ties to the Trump administration, said he will reduce his involvement with Doge to focus more on Tesla. During the call with investors, Musk tried to reassure them, noting that “we are not on the brink of death in junk” and noting that Q1 is usually slower due to weather-related shopping methods.
Tesla’s stock price rose 5% in after-hours trading and continued to show a volatility trend, which analysts believe is already out of touch with the company’s core financial results.
