The electric vehicle maker warns of ‘uncertainty’ in the global economy.
Shares of Tesla Motors were little changed in extended trading after the electric vehicle maker’s first-quarter earnings report fell short of Wall Street estimates.
Total revenues fell by 9 percent to $19.34 billion from $21.3 billion a year earlier, and automotive revenues plunged 20 percent to $14 billion from $17.4 billion last year.
Earnings per share were 27 cents in the first three months of 2025, while profits declined by 71 percent to $409 million, from $1.39 billion.
Tesla was expected to report revenues of $21.24 billion and earnings per share of 43 cents in the January to March quarter, according to analysts polled by FactSet.
The company said in the first-quarter earnings report that uncertainty in the global economy could harm demand in the short term.
“Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,” Tesla stated. “This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term.”
“Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,” Tesla stated. “This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term.”
Tesla believes that its localized manufacturing base provides the company “advantages in delivering the best products” at competitive prices.
“We continue to make critical, high-value investments while maintaining a strong balance sheet during this uncertain period,” the quarterly update deck stated.
Tesla stock dipped as much as 0.5 percent in after-hours trading. Shares of Tesla have dropped about 37 percent this year, sliding below $238.
Rough Start to 2025
It has been a challenging beginning to the year for the company.
The company’s main headline driver has been the anti-Musk backlash in the political arena. Across North America and Europe, individuals have staged demonstrations at Tesla showrooms, protesting the Trump administration’s policy changes.
Over the last several weeks, the situation has escalated as vehicles have been defaced, dealerships attacked, and Tesla chargers destroyed by arson fires.
By Andrew Moran
