Tesla’s first-quarter automotive revenue dropped 20% year-on-year due to reduced deliveries affected by anti-Musk sentiment, factory retooling, and seasonal factors. The company also faces supply chain and cost challenges linked to the US–China trade war.
Tesla reported a sharp year-on-year decline in first-quarter earnings, driven by a fall in deliveries, partly linked to CEO Elon Musk’s political involvement. Revenue and net income both came in well below analysts’ expectations, as factory retooling for new models and macroeconomic uncertainty dampened demand.
Despite the disappointing results, Tesla’s shares jumped more than 5% in after-hours trading, amid a broader rally in equity markets triggered by US President Donald Trump’s remarks that he had no intention of dismissing Federal Reserve Chair Jerome Powell. Nevertheless, Tesla’s shares remain down 34% year-to-date, making it the worst performer among the so-called Magnificent Seven tech stocks.
Tesla’s earnings fall sharply
In the first three months of the year, Tesla’s automotive revenue declined 20% year-on-year to $14 billion (€12.28 billion), while earnings per share dropped 40% to $0.27 (€0.23). Total revenue fell 9% from a year earlier to $19.3 billion (€16.92 billion). Meanwhile, revenue from energy generation and storage rose by 67%, achieving “a fourth sequential record for Powerwall deployments.”
In its earnings report, the company attributed the revenue decline to reduced vehicle deliveries, “in part due to the Model Y update across all four vehicle factories, reduced vehicle average selling price due to mix and sales incentives,” and negative foreign exchange impacts. However, growth in energy generation and storage services, along with increased regulatory credit revenue, helped to partially offset the drop.
Source: AFP
