Tesla’s first-quarter earnings revealed a sharp decline in profits after automotive revenue fell by 20%, and net income dropped by 71%. The company delivered 336,681 vehicles, marking a 13% drop from the same period last year, the weakest performance since 2022.
This decline is attributed to several factors, including reduced vehicle deliveries, factory retooling for new models, and the ongoing trade war between the U.S. and China. Another contributing factor is Tesla CEO Elon Musk’s increasing political involvement in advising the Trump administration on job cuts, particularly his role in leading the Department of Government Efficiency (DOGE), which has led to widespread protests against the company.
Musk announced that he would scale back his involvement in DOGE and dedicate more time to Tesla starting in May. This decision has been met with investor optimism, as many have raised concerns about Musk’s focus on government roles at the expense of managing his companies. Tesla’s shares rose over 5% in after-hours trading following the news, although the stock has still fallen significantly this year.
