Tesla released its results for the first quarter of 2025 this week, and they fell far short of expectations. Revenue totaled $19.3 billion, down 9% year-on-year. Without the sale of $595 million in regulatory credits, the company would have even recorded a loss.
Plummeting profits, declining sales
The blow is all the more severe given that all of Tesla's segments are affected. The automotive division, usually the company's driving force, saw its revenue fall by 30% compared to the previous quarter. Energy and services also declined, by 11% and 8% respectively. Operating profit and net profit were divided by four in three months.
For shareholders, it's a cold shower. The stock has plummeted by 37% since the beginning of the year, stabilizing at $238. A downward spiral that even Musk's futuristic ambitions—steering wheelless robotaxi, Optimus humanoids, artificial intelligence—are challenging. can no longer compensate.
At the same time, Elon Musk announced that he would reduce his involvement in DOGE, the government efficiency department created under President Trump, to focus again on Tesla. A decision made necessary by the scale of the crisis shaking the group.
This return to business is accompanied by an attempt at repositioning. Elon Musk continues to bet on autonomous driving, which he describes as the future of the company. A vehicle without a steering wheel or pedals, the "Cybercab", is supposed to enter the testing phase in Austin as early as June. Tesla has also applied for a permit to carry passengers in California.
But the promise of fully autonomous driving remains a thorn in the side: delays are getting longer, regulators are putting on the brakes, and the competition—especially Chinese—is moving at high speed.
In the background, protests are growing. Groups like "Tesla Takedown" are claiming to have organized hundreds of demonstrations around the world, denouncing Musk's practices and calling for a boycott. Acts of vandalism have targeted dealerships, charging stations, and vehicles.
Despite All in all, some investors continue to believe in Tesla's future, betting on a turnaround as soon as Musk steps away from the arcana of power. "This is the sacrificed year," admits Deepwater's Gene Munster, "but we think Tesla can bounce back."
0 Comments