Tesla Reports Sharp Revenue Drop amid Protests, Political Turmoil

Tesla reported a significant decline in both revenue and net income for the first quarter of 2025, with net income falling by 71% and automotive revenue dropping 20% year over year, amid its worst sales quarter in three years. The company blames increased uncertainty in global trade policy and shifting political sentiment for adversely impacting demand and the supply chain. CEO Elon Musk's prominent role in a controversial government cost-cutting group and his alignment with former President Trump have also sparked public backlash, protests, and calls from some analysts for Musk to step back from his political activities. Tesla faces mounting competition from Chinese and European EV makers, with rivals offering advanced technology and faster charging capabilities. In response to these challenges, Tesla plans to launch a cheaper Model Y and introduce a paid driverless robotaxi service in Austin, while investors closely watch for updates on these initiatives. Despite domestic manufacturing insulating Tesla from some tariffs, the company is still impacted by new import taxes and retaliation from China, including a halt in orders for certain models in the Chinese market.