Tesla sales drop 9% as carmaker warns political sentiment' could impact future demand
Briefly

In the first quarter of 2025, Tesla experienced a significant 9% decline in revenue, totaling $19.3 billion—well below Wall Street's expectation of $21.45 billion. The company's earnings per share also fell short at 27 cents compared to the expected 43 cents. With a 13% drop in vehicle sales, marking its worst quarter since 2022, analysts are concerned about its future. Despite these challenges, some believe there is hope for recovery as new products are anticipated soon, provided Elon Musk can refocus on Tesla's operations instead of his government role.
Despite a 9% revenue drop, with $19.3bn reported below expectations, analysts see potential upside for Tesla as expectations were previously lowered due to declining vehicle deliveries.
Analysts attribute Tesla's challenges to various factors, primarily pointing to Elon Musk's involvement in the White House causing the company a significant branding crisis.
With a staggering 50% decline in share prices and a 13% drop in sales, analysts suggest Tesla is at a turning point that requires Musk's full attention back on the company.
Investors might anticipate a rebound as new models, including a cheaper version and the Robotaxi, are expected later this year, implying potential future growth.
Read at www.theguardian.com
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