Tesla’s net income for the first quarter of 2025 was down 71% after a decline in vehicle deliveries as Tesla battled growing competition from foreign brands, shifting trade policies and growing backlash to the brand after Musk aligned himself with the Trump administration.
The company also saw a 9% decline in revenue.
Elon Musk, the company’s CEO, attributed some of Tesla’s struggles to “rapidly evolving trade policy” and “changing political sentiment” and said he would soon be spending less time with the Trump administration after first-quarter earnings fell short of expectations.
“There are some challenges, and I expect that this year will be, there will probably be some unexpected bumps this year,” Musk said in an earnings call April 22. “But I remain extremely optimistic about the future of the company.”