Declining sales figures and weak revenue. Tesla has presented its financial results, which look anything but rosy. Tesla also dampens expectations that things might improve in the next quarter.
The automotive company Tesla has released its financial results for the first quarter of 2025, and the current figures do not look good for the company. Tesla itself has tempered expectations that things might improve in the coming months.
Currently, Tesla is facing several major issues: Sales figures have plummeted, and there are also protests against Tesla.
Weak revenue and reduced sales figures
What do the figures look like? Tesla has published the financial results for the first quarter (via TheVerge.com):
- Tesla reported a net profit of 409 million dollars on revenue of 19.3 billion dollars. This is below Wall Street’s expectations of 21.1 billion dollars and represents a decline of 9.4 percent compared to the previous year, compared to 21.3 billion dollars in revenue in the first quarter of 2024.
- The net profit in the first quarter decreased by 71 percent. Tesla’s automotive revenue fell year over year by 20 percent, from 17.4 billion dollars in the first quarter of 2024 to 13.9 billion dollars in the latest quarter.
How is Tesla doing otherwise? Tesla delivered as few cars in the last quarter as it has in years: The company reported a total of 336,681 vehicles delivered, a decrease of 12.9 percent compared to the first quarter of 2024.
The European market is even more severely affected: According to Tagesschau, only 19,000 vehicles from Tesla were sold in Europe in January and February 2025.
Musk’s political escapades harm Tesla
Elon Musk’s political adventures are now also harming Tesla. Already in November 2024, Musk’s father expressed concerns that his son’s political ambitions could damage Tesla. He stated at the time that politics would inevitably keep Elon Musk away from board meetings and managing his companies, which could become a significant long-term problem for his firms. And this is exactly what Tesla is now experiencing. However, there are now also reports indicating that Musk wants to withdraw from politics (via TheVerge.com).
Furthermore, political protests in the USA are also being directed against Tesla vehicles and have triggered a brand crisis: There have been several violent attacks on Tesla stores and vehicles worldwide, including multiple cases of arson and vandalism. Many people therefore no longer want to drive a Tesla or are considering selling their cars.
Another point is that shareholders and senior members of the company have long demanded that Tesla should offer an inexpensive and affordable vehicle for 25,000 dollars. This could help regain ground. However, Elon Musk prefers to invest a lot of money in autonomous vehicles that may never be profitable. At least that is the concern of high-ranking managers in the company.
Elon Musk is among the richest people in the world. Now he has lost 40 billion dollars in one week. This is mainly due to his company Tesla. The corporation has been struggling for weeks, attributed to weak sales figures and strong competition from China. And the falling stock price is noticeable: Elon Musk has set a new record: he has now lost 40 billion dollars in one week, and that is solely due to Tesla
