Tesla reports plunging revenue, profits amid Musk controversy

Tesla reported a significant drop in revenue and profits for the first quarter of 2025, with revenue falling 9% and net income plunging by as much as 71% year over year. The decline was attributed to a combination of political backlash against CEO Elon Musk’s role in the Trump administration, intensified competition from Chinese electric vehicle makers, and uncertainties surrounding global trade policies. Investors and analysts have raised concerns that Musk’s political involvement is damaging Tesla’s brand, leading to falling sales, a sharp dip in stock price, and increased resale activity among existing owners. The company has also faced operational challenges, including a major Cybertruck recall and removal from auto shows amid ongoing protests. Tesla declined to provide forward-looking guidance, citing rapidly evolving trade and political environments as major uncertainties impacting both demand and supply chains. Despite current turmoil, some analysts remain optimistic that a refocus by Musk on Tesla could restore the company’s long-term prospects.