At a Glance

  • Electric vehicle maker Teslafirst-quarter net profit fell to $409 million, down 71% year-over-year for the quarter ended March 31, compared with $1.4 billion in the same period last year. The results were released on Tuesday (April 22) with the quarterly report.
  • The sharp profit decline comes as the Austin, Texas-based EV maker faces intensifying competition in key overseas markets such as Europe, as well as the ongoing impact of trade wars triggered by President Donald Trump's aggressive tariff strategy. Chief Financial Officer Vaibhav Taneja said on Tuesday's earnings call that tariffs will have a "multifaceted impact" on Tesla's business,reiterating a warning he issued earlier this year。
  • Although the company has pushed a "regionalized layout" for years and has certain advantages in dealing with tariffs, it is not immune:Tariffs targeting the auto industry(including auto parts from countries such as Mexico and Canada) that are about to take effectspecific tariffs"will have an impact on profitability," Taneja said.

In-Depth Analysis

The EV maker also reported a 9% decline in total revenue for the first quarter of 2025,with automotive revenue falling about 20%, dropping to approximately $13.9 billion from about $17.4 billion in the same period last year, according to its financial report.

The lackluster results come after the company reported earlier this month thatvehicle deliveries fell 13%, as tariff standoffs between the U.S. and major trading partners including Europe and China weighed on global sales.

On Tuesday's earnings call, Taneja attributed the delivery decline to the company's efforts to upgrade its factories—efforts Tesla had previously announced would affect production, Taneja said.

"Additionally, vandalism and unwelcome hostility directed at our brand and employees had a negative impact in certain markets," the CFO said. Despite the delivery decline, the company has sold out of older Model Y units in the U.S., China, and some other markets, he said Tuesday.

Taneja is one of several Tesla executives who have sold company stock multiple times in recent months. According to earlier reporting by CFO Dive, shortly after the company released its vehicle delivery data, the finance chiefsold shares with a total market valueof $957,720—his third stock sale within three months.

As Taneja and other executives—including CEO Elon Musk's brother Kimbal Musk—have reduced their stakes, Tesla's stock has remained volatile, giving back most of the post-election gains driven by Musk's political activities at the Department of Government Efficiency (DOGE) within the Trump administration.

Despite the company's profit plunge,Tesla shares rose after Tuesday's earnings release, as Musk said on the earnings call that he would reduce his time at DOGE.

In his opening remarks, Musk referenced the "backlash" related to his work at DOGE, which has sparked protests against his political activities and his leadership of Tesla. For example, on Tuesday,protesters flew a banner over the Texas State Capitol in Austinreading "Save Tesla, Fire Musk." Meanwhile, federal officials havearrested and charged multipleindividuals suspected of vandalizing Tesla vehicles and showrooms, according to a recent Forbes report. Last week, the Department of Justice arrested a Kansas City resident, charging him in connection withan arson at a Tesla facility in that city.

Musk argued Tuesday that the "real reason" for such reactions to his political activities is that "those who benefit from waste and fraud want to keep benefiting."

The department has made "great progress" in addressing waste and fraud, he said. "The natural backlash from that is that those who were receiving wasteful funds and improper funds will try to attack me, the DOGE team, and anything associated with me."

However, Musk also said that starting next month, his time at the department could be "significantly reduced."

"I think as long as the president wants me to continue, and as long as it's useful, I'll continue to spend one or two days a week on government affairs," he said. "But starting next month, I'll likely allocate more time to Tesla, as the main work of building DOGE is done."

The CEO also expressed optimism about Tesla's future prospects, noting that Tesla "has actually experienced multiple near-death moments," Musk said. "We've probably been on the brink of death at least a dozen times. Too many to count. But this isn't one of those times. We're not on the brink of death, not even close."