Tesla reported a 71% drop in net income for Q1 2025, marking a major financial setback. The company earned $409 million, down from $1.39 billion in the same period last year. Its total revenue fell 9.4% to $21.3 billion, missing Wall Street expectations by $1.8 billion.
Vehicle deliveries also declined. Model 3 and Model Y shipments dropped by 16%, while other models, including the Cybertruck, saw a 24% fall. Without $595 million in regulatory credit revenue, Tesla would have reported a net loss, according to Electrek.
Tesla blamed the downturn on global political and economic uncertainty. The company pointed to shifting trade policies and rising costs in its investor update. Elon Musk’s controversial public behavior and political ties have also sparked backlash, possibly impacting sales.
Despite the weak report, Tesla shares rose 5% in after-hours trading. Musk told investors the company isn’t in crisis, calling the slowdown seasonal. Still, analysts worry the stock’s volatility may not match Tesla’s current financial health.