Il first quarter of 2025 It was a rude awakening for Tesla. The utiles have fallen by 71%, while the turnover fell to 19,3 billion of dollars, well below the Wall Street Expectations. But the numbers, as alarming as they are, tell only part of the crisis. The hardest blow came on the image front.
La Elon Musk's popularity has suffered a clear braking after his controversial entry into the government Trump as a “czar” of public efficiency. The too-close bond with the president has irritated a significant part of Tesla’s progressive base, especially in Europe, where boycotts and protests have exploded.
To make the context even more difficult, the absence of truly disruptive innovations in the range, the increasing aggressiveness of the competition and the consequences of a trade war which weighs on production and margins. Faced with this scenario, Musk has announced a partial retirement from the political scene, promising to reduce the time he spent in government. A choice made even more inevitable by the first cracks in his relationship with Donald Trump.
Tesla, first quarter results: sudden collapse
In the first quarter of 2025, Tesla recorded a worrying decline in its financial results. Theearnings per share fell 40%, stopping at just $0,27, while the Revenues fell 9% at $19,3 billion, a figure that negatively surprised analysts, who had expected better results. automotive division saw an even more dramatic decline, with the revenues down of 20% compared to the same period of the previous year. The company attributed the sales drop to several factors, including the decrease in the average selling price and the update of the popular Model Y, which slowed down production. The Deliveries decreased by 13% at 336.681 units, marking the weakest quarter since mid-2022.
Tesla hasn't just suffered on the numbers side. Growing competition in the electric car sector has intensified the pressure, and the company is facing additional headwinds, such as exchange rate issues and an uncertain macroeconomic environment, which have negatively impacted profit margins. TheNet income fell 71% to $409 milliona operating margin down by 5,5 2,1% to%.
However, not everything is negative. The energy division registered one record growth of 67%, thanks to products like the Powerwall and production from the Shanghai factory, which continues to support global demand.
Musk and Trump: A Costly Bond for Tesla
Making the situation even more complex for Tesla is the involvement of Elon Musk in the Trump administration, where he played a controversial role in Department of Government Efficiency. This dual commitment has drawn heavy criticism, both in the United States and internationally. During a recent conference call, Musk said that starting early next month he will significantly reduce the time he spends on political issues, committing to switching no more than two days a week in the Trump administration. The Jerome Powell's confirmation as Fed leader and Trump's backtracking on tariffs they contributed to a 5% rebound of the title Tesla in after-hours trading.
Despite internal criticism, Musk has reiterated his support for the policy of reducing government spending and defended his positions, saying that fighting government red tape and waste is essential. However, it is clear that his political decisions are taking a toll on Tesla's image, especially in a context of growing competition and political tensions.
But the tensions do not stop: the trade policies of the Trump administration, with aggressive tariffs, risk increasing production costs for Tesla in the US and triggering international retaliation, particularly from China, with direct repercussions on exports.
Tesla's new moves for the relaunch
Despite falling profits and political uncertainty, Elon Musk has no intention of slowing down. Tesla is aiming to relaunch itself with a series of strategic moves designed to expand its customer base and regain market confidence. Among these, the launch of a cut-price Model Y, scheduled for the first half of the 2025, with the aim of attracting a wider audience and reversing the negative trend in sales.
But it's on the front technological that Musk is playing his most ambitious gamble. The launch will take place in Austin in June First operational test of the driverless robotaxi, with the aim of launching a large-scale autonomous fleet by 2026. The goal is clear: by the end of the year, millions of Teslas should be technically capable of driving themselves. However, the system Autopilot it's still under investigation due to potential safety concerns, and many experts remain skeptical that fully autonomous driving is ever imminent.
In the short term, the introduction of new models and solutions like the robotaxi could help Tesla navigate these turbulent waters. But the company will face increasing competition, shrinking margins, and an unstable economic environment. If Musk can maintain his focus on innovation and distance himself from political controversy, Tesla may still have a real chance of recovery.
But, as always with Elon Musk, nothing is ever predictable.
