CNN
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Tesla reported a sharp drop in revenue and earnings in the first quarter on Tuesday, and warned that the outlook for the rest of this year is uncertain.
While Tesla is less exposed to tariffs than most other automakers, it said it would have to revisit its guidance because of current trade disputes.
“It is difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains, our cost structure and demand for durable goods and related services,” the company said.
The company reported its revenue fell 9%, with auto revenue falling 20%. Adjusted income tumbled 39%. Both drops were bigger than forecast.
Analysts lay much of the blame for the biggest drop in sales in company history as blowback to CEO Elon Musk’s controversial role in the Trump administration as the head of the Department of Government Efficiency (DOGE). There have been protests outside Tesla showrooms and vandalism at its facilities. There has also been a sharp drop in sales in Europe, where Musk has also become politically active supporting far right political parties in Germany and the UK.
But shares were only marginally lower on the report and the uncertain guidance as the company reaffirmed that it still plans to come out with a more affordable model by the end of June. It also said it that its driverless “robotaxi” will be released by next year. The company has promised it won’t have a steering wheel or accelerator or brake pedals, and that an initial service with for driverless rides will start later this spring.
Tesla, however, has been promising both of those products for years and has yet to deliver them. It also did not give any details on the more affordable model that is supposedly close to production.
This is a developing story. It will be updated.
