Tue Apr 22 22:10:00 UTC 2025: ## Tesla Reports Crushing First-Quarter Losses Amid Production Slowdown and Tariff Fears
**New York, NY –** Tesla announced significantly disappointing first-quarter earnings on Tuesday, reporting a substantial miss on both revenue and profit expectations. Automotive revenue plummeted 20% year-over-year to $14 billion, driven by production line updates for the Model Y SUV, lower average selling prices, and increased sales incentives. Net income plunged 71% to $409 million, a stark contrast to the $1.39 billion reported in the same period last year.
The company cited President Trump’s sweeping tariffs as a significant headwind, raising concerns about increased costs for essential components. This uncertainty, combined with evolving trade policies, led Tesla to refrain from providing future growth projections, stating they would revisit their 2025 guidance in the second-quarter update.
Tesla’s struggles extend beyond financial results. First-quarter deliveries fell 13% year-over-year to 336,681 units, highlighting challenges in competing with lower-cost rivals in China and lagging in the burgeoning robotaxi market. While the company reiterated its plans for a driverless ride-hailing pilot launch in Austin, Texas, in June and the start of humanoid robot pilot production this year, investor sentiment remains fragile.
The stock, already down 41% year-to-date, experienced its worst quarterly drop since 2022 following the earnings report. While initially showing little movement in after-hours trading, the stock saw a near 5% surge after President Trump dismissed speculation of Federal Reserve Chair Jerome Powell’s dismissal.
Despite a 67% jump in energy generation and storage revenue to $2.73 billion, Tesla’s overall performance underscores significant challenges. The company even acknowledged it would have reported a loss on automotive sales without revenue from environmental regulatory credits, which reached $595 million. The company’s call with analysts is scheduled for 5:30 p.m. ET.
First Piper 