Tesla profits drop 71% on weak sales and anti-Elon Musk sentiment
Tesla’s flailing sales figures have put the company closer to the red than it has been in years, according to financial results released Tuesday, threatening one of its biggest advantages over other EV players.
The electric automaker reported $409 million in net income on $19.3 billion in revenue after delivering almost 337,000 EVs in the first quarter of the year. It was the worst quarter for Tesla deliveries in more than two years and came on the heels of the company’s first-ever year-to-year drop in sales.
The company also cautioned about how the trade way may affect its business moving forward.
Tesla says the trade war and “changing political sentiment” could have a “meaningful impact on demand for our products.” The company added that the “dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term.”
The company noted the current tariffs, the bulk of which are directed at China, will have “a relatively larger impact on our Energy business compared to automotive.” Tesla said it is taking actions to stabilize the business in the medium to long-term and focus on maintaining its health.
