Tesla Q1 Results: Net profit drops 71%, revenue falls 9%; Stock price jumps as Elon Musk to reduce White House role

Tesla reported a 71% year-on-year decline in first-quarter profit, as weakening automotive demand and geopolitical uncertainties weighed on the electric vehicle (EV) maker’s performance. The company posted a net profit of $409 million for the January–March period, falling short of analyst expectations.

Revenue for the quarter declined 9% year-on-year to $19.34 billion, compared to consensus estimates of $21.11 billion, according to LSEG data. Operating income stood at $399 million for the period.

Adjusted earnings came in at 27 cents per share, missing the average analyst forecast. Automotive gross margin, excluding regulatory credits, fell to 12.5%, down from 13.6% in the previous quarter, based on Reuters’ calculations.

Tesla also withdrew its previous guidance for 2025, citing elevated uncertainty around trade policy and demand trends.

“Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,” Tesla said.

“This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term,” it added.

Robotaxi Launch

Tesla said it was on track to launch new vehicles “including more affordable models” in the first half of 2025. The automaker also confirmed a planned launch of its Robotaxi for autonomous driving in Texas remained “on track” by June.

Musk reiterated his bullish outlook on the long-term prospects for Tesla, highlighting its leadership in key growth areas: robotics, autonomous driving and artificial intelligence.

Musk to reduce White House role

Tesla CEO Elon Musk said he would cut back significantly the time he devotes to the Trump administration from next month and spend more time running his many companies.

Musk said on a conference call with analysts Tuesday that “now that the major work of establishing the Department of Government Efficiency (DOGE) is done,” that he will be “allocating far more of my time to Tesla” starting in May. Musk said he now expects to spend just “a day or two per week on government matters”, AFP reported

Tesla stock price, which had risen 4% in after-hours trading right before an earnings conference call began, spiked to trade up 5.5% on Musk's comments.

(With inputs from Agencies)

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