Car industry Tesla with severe profit slump in the first quarter
Following a model change and controversies surrounding the political role of CEO Elon Musk, Tesla closed the past quarter with clear declines in sales and profits. Revenue fell by nine percent year-on-year to just over 19.3 billion dollars.
22.04.2025, 23:03
22.04.2025, 23:12
SDA
At the bottom line, profit fell by 71 percent to 409 million dollars compared to the same period last year. Tesla's figures fell short of analysts' expectations. On average, they had expected sales of a good 21 billion dollars. Tesla's adjusted earnings per share amounted to 0.27 dollars, while the market had expected an average of 0.39 dollars.
The share price fluctuated between slight gains and slight losses in after-hours trading. At the same time, Tesla confirmed that production of cheaper model variants would begin in the first half of 2025. It was also confirmed that a robotaxi without a steering wheel and pedals is to be produced from 2026.
Fewer cars delivered
The results come as no surprise: Tesla's deliveries fell by 13 percent to 336,681 vehicles in the first quarter. It is difficult to determine the extent to which individual reasons contributed to the decline. One factor is likely to be the switch to a new generation of the best-selling Model Y.
Tesla retooled its production lines at the beginning of the year. Production was paused for a few weeks for this. At the same time, there was less incentive for prospective buyers to purchase a vehicle of the previous Y variant.
Controversy surrounding Musk
Musk's political activities also cast a shadow over the Tesla business. Last year, the tech billionaire became a close ally of Donald Trump, to whom he donated more than 250 million dollars for the election campaign for the White House. As president, Trump tasked him with reducing government spending.
Critics accuse Musk of taking a ruthless approach to the cuts in Washington. In addition, his right-wing political views are putting off some potential Tesla buyers. Analyst Dan Ives of Wedbush Securities, who has long been very optimistic about Tesla's future, estimates that the damage to the brand from Musk's actions could permanently depress Tesla demand by 15 to 20 percent.
