Tesla Q1 Earnings Show 71% Profit Drop Amid Musk Controversy

Tesla reported a significant decline in first-quarter revenue and profits, falling short of Wall Street expectations, with revenue down 9% and profits plunging by more than two-thirds compared to last year. The company attributed the poor performance to a sharp drop in vehicle deliveries—its largest sales decline in nearly three years—caused in part by backlash over CEO Elon Musk's political activities, particularly his role in the Trump administration and support for far-right politicians in Europe, which led to protests and declining sales overseas. Tesla also warned of ongoing uncertainty due to global trade disputes and new tariffs imposed by the Trump administration, which could further impact its supply chain and cost structure. Despite these challenges, Tesla indicated plans to roll out a cheaper Model Y and introduce a paid driverless robotaxi service later this year, while reaffirming its commitment to developing more affordable vehicles. The company left out a return-to-growth forecast in its earnings report, saying guidance would be revisited in the next quarter. Meanwhile, Tesla's stock has fallen significantly year-to-date, reflecting investor concerns over leadership distractions and increasing competition, particularly from Chinese and European EV manufacturers.