Electric car giant Tesla was hit hard on earnings during the first quarter of 2025. A full 66 percent disappeared.
Tesla's financial figures show a significant decline in the first quarter of 2025. Earnings have fallen by a whopping 66 percent compared to the same period last year.
Global sales fell by 13 percent at the same time.
The American electric car manufacturer's operating income came in at approximately DKK 2.8 billion from January to March. This is a significant drop from the approximately DKK 8.2 billion in the same period in 2024.
Tesla's revenue attributable to car sales fell 20 percent, from approximately DKK 121.8 billion to DKK 98 billion.
However, an increase in revenues from energy production/storage (+67 percent) and services (+15 percent) has dampened the overall decline. Total revenue fell 'only' nine percent.
Total revenue in the first three months of 2025 was approximately DKK 135 billion. This was lower than the expected DKK 150 billion. Gross profit fell 15 percent to approximately DKK 22.4 billion.
Political factors and Elon Musk's role
The financial results come after news of a 13 percent sales drop in the first quarter of 2025. The downturn comes after Tesla saw sales decline for the first time in many years.
The car brand has failed to provide a forecast for 2025. This is otherwise normal practice. Uncertainty and customs duties are cited as reasons.
"It is difficult to measure the impact of changing global trade policies on the automotive and energy supply chains, our cost structure and demand," Tesla wrote in a statement.
– While we are making prudent investments that will position both our automotive and energy businesses for growth, the growth rate this year will depend on various factors, the company adds.
Tesla management cites, among other things, developments in self-driving technology, production changes at the factories, and the broader macroeconomic environment.
Tesla also mentions that "changing political sentiment" could "have a significant impact on demand for our products in the near term."
The sales decline has been partly linked to CEO Elon Musk's political involvement with the US government.
Market reactions and model challenges
Musk has had and still has a significant role in Donald Trump's government since Trump was re-elected as president.
Conversely, Musk is expected to leave his role in the government apparatus around May 30th.
Media outlets such as the New York Times are reporting increasing pressure on Musk to leave government work even earlier than planned due to Tesla's weak performance.
The controversies surrounding Musk have led to a record number of Tesla owners in the US swapping their cars for alternatives from competitors.
It has even gotten to the point where Tesla will no longer accept the Cybertruck model, their own car, in exchange for newer cars. Read more about it here .
