The manufacturer of giant electric vehicles (EV) Tesla published its first quarter (T1) results on Tesla on Tesla, marking its lowest performance since 2021 on Tuesday.
Tesla declared a 20% drop in 2025 revenues in the first quarter, which ended on March 31. Total automotive income was displayed at $ 13.97 billion, compared to $ 17.38 billion in the same period. The manufacturer EV awarded the decline to the necessary upgrade in its factories.
Net profit has decreased considerably from 71% to $ 409 million, compared to $ 1.39 million. The adjusted profits were $ 0.27 per share and $ 19.3 billion in revenues are not below facts and $ 0.41 BPA and $ 21.3 billion. This represents Tesla’s lowest sales since the second quarter of 2022 and the least profitable quarter since the first quarter of 2020. Turnover fell 9% in annual shift compared to $ 21.3 billion, while net profit dropped from $ 71% to $ 409 million against $ 1.4 billion in the first quarter of 2024.
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Tesla has awarded the massive drop in income to the development of global trade policies, macroeconomic uncertainty and its investment in autonomy and production ramps.
In a press release, the company said,
“It is difficult to measure the impacts of the change in global trade policy on automotive and energy supply chains, our cost structure and the demand for lasting goods and related services. Although we make prudent investments that will both put our vehicle and energy companies for growth, the growth rate this year will depend on various factors, including the rate of acceleration of our production efforts, our factors, and our production efforts. 2025 Guide in our Q2 update. »»
Tesla World Sales fell 13% over a year to 336,681 units in the first quarter of 2025, a 9% drop in American sales to 128,100 units. In the middle of the drop, the CEO of the company, Elon Musk, said that his time allowance in Doge will drop considerably from next month, noting that he will devote much more time to Tesla.
He wrote on X,
“”The large work slug needed to put the Dogey team in place is mainly finished; I will continue to spend 1 to 2 days a week as long as the president wants it.“”
Remember that Elon Musk was appointed by the American president elected Donald Trump, in November 2024, to lead the Ministry of Government Effectiveness (DOGE), alongside Vivek Ramaswamy, because of his reputation as a cost reduction entrepreneur and his significant financial support for the campaign in 2024 of Trump.
Trump has responsible for reducing federal spending, reducing bureaucracy, reducing regulations and restructuring agencies. The role of Musk as a “special government employee” takes advantage of his experience in optimizing operations in companies like Tesla and SpaceX, where it has considerably reduced costs, such as the 80% reduction in X workforce after its acquisition.
However, following its involvement in political affairs, Tesla investors expressed their concerns that the deep involvement of Elon Musk with the Ministry of Government Effectiveness (DOGE) diverted its attention from the company of electric vehicles, which has a negative impact on its performance and market value.
Analyst Daniel Ives of Wedbush Securities noted in March 2025 that Musk’s attention on DOGE “harmed investors’ confidence”, because Tesla faced challenges such as dismal gains and warned against the potential reversals of Trump’s pricing policies. X publications echo this feeling, with users like @drjstrategy watching that Tesla’s actions were “pounded” by Wall Street while Musk prioritized government efficiency efforts.
The criticisms argued that Tesla, at a critical time for its deployment of autonomous vehicles, needed total attention of musk, in particular during federal progress on the Tesla automatic pilot system and competitive pressures on the electric vehicle market. However, some others like Divistech replied that the role of Doge de Musk would not significantly harm Tesla’s long -term objectives, citing its ability to perform several tasks.
Ahead
Musk limiting his Dogey time could benefit Tesla by allowing her to fight against the drop in sales, rebuild the brand’s confidence and focus on autonomous driving and new models.
Elon Musk said that he was going to “considerably” the reduction in the time he spends with Doge from next month, going more attention to his role as CEO of Tesla. Speaking on a conference call to discuss the quarterly results of the electric vehicle manufacturer, Musk said that his work put in place Doge is “mainly done” and that he plans to spend a day or two per week working on government issues. Addressing the price policies of the White House, Musk said that he “would plead at lower rates”.
