Tesla reported a significant drop in revenue (9%) and adjusted income (39%) in the first quarter, exceeding analysts' predictions. Auto revenue alone fell by 20%, marking the company's largest sales decline.
Tesla attributes some of the financial downturn to global trade policy uncertainty and its impact on supply chains and demand. Although less exposed to tariffs than other automakers, the company acknowledges significant challenges.
Analysts suggest that CEO Elon Musk's controversial political activities have also contributed to the decline in sales. Protests, vandalism, and decreased European sales are cited as a result of Musk's political stances.
Despite the negative results, Tesla's stock remained relatively stable. The company reiterated plans for a more affordable car model by June and a driverless "robotaxi" by next year, though the details remain scarce and these promises have been made before.