Down 71%: Tesla’s profit drop in Q1 2025 worries Elon Musk (X @Tesla)
Tesla reported a 71% drop in profit for the first quarter of 2025 compared to the same period last year, well below analysts’ expectations.
Revenue also fell short of expectations, totaling $19.34 billion compared to the $21.43 billion projected by Bloomberg. Elon Musk attributed part of the decline in demand for electric cars to changes in the “political climate,” which may be linked to his alignment with President Donald Trump. The company also highlighted instability in trade policies as a factor negatively affecting its supply chain and cost structure.
Despite the poor results, Tesla reaffirmed its plans to launch new affordable vehicles in early 2025 and begin production of robotaxis in 2026, two initiatives closely watched by the market. However, amid uncertainties, the company decided to revise its projections for 2025 and withdrew its long-term growth target.
Tesla shares rose 4.6% at market close, although the increase was more modest in after-hours trading. The company’s gross margin for the quarter was 16.3%, slightly above expectations, while the automotive gross margin (excluding regulatory credits) stood at 12.5%.
Tesla had previously promised that the new models, including a cheaper car, could once again drive 50% growth compared to 2023.
Source: O Globo | Photo: X @Tesla | This content was created with the help of AI and reviewed by the editorial team
