It wasn’t long ago that Tesla was the darling of the electric vehicle world, hailed by tech lovers and eco-conscious drivers as the future of transportation.
But now, the once-glowing outlook is dimming. The latest earnings report reveals a massive shake-up at Tesla—and it’s not pretty.
Profits Crash by Over 70 Percent in Just One Year
Tesla just dropped a financial bombshell: its profits for the first quarter of 2025 have plunged by a jaw-dropping 71 percent.
The electric vehicle leader pulled in $409 million in profit—an alarming drop from $1.4 billion during the same period last year.
That’s not what Wall Street was expecting. Investors had hoped for a stronger performance from Tesla, but instead, they’re facing numbers that suggest the brand is wobbling under pressure.
Political Shifts and Public Backlash Fuel the Fallout
There’s more to this slump than just sales numbers. A growing number of consumers are frustrated with CEO Elon Musk’s political leanings.
Once a progressive icon, Musk has shifted toward supporting far-right candidates and even poured money into Donald Trump’s campaign.
That change hasn’t gone unnoticed—and many buyers aren’t thrilled.
Protesters have taken to Tesla dealerships, rallying against Musk’s political stances.
One activist group, Tesla Takedown, says this is exactly the kind of impact they were aiming for.
“This earnings report proves our movement is hitting Tesla where it hurts—right in the wallet,” the group said in a statement.
Tesla Still Leads, But Cracks Are Showing
Despite the grim quarter, Tesla still holds its title as the top-selling EV brand in the U.S. and remains the most valuable car company in the world by market cap.
But those titles aren’t enough to soothe investors who are worried Musk has lost focus on the company’s core mission: building groundbreaking cars.
The Model Y and Model 3, Tesla’s bread-and-butter vehicles, recently got a facelift.
Meanwhile, the bold and boxy Cybertruck, which launched in late 2023, has become the best-selling electric pickup in the country.
Competition Is Heating Up Fast—Especially from China
But here’s the catch: Tesla’s lineup is starting to look a little stale. While the company tweaks its models, global competitors are charging ahead—literally.
Chinese EV makers like BYD, NIO, XPeng, and Zeekr are cranking out sleeker models with more advanced tech and faster battery charging.
One BYD model even claims it can recharge in a third of the time it takes a Tesla.
It’s not just China, either. In the U.S., Rivian is giving Tesla a run for its money with trucks that can go 100 miles farther on a single charge.
Hyundai and Kia have introduced more affordable alternatives, while GM has revamped its EV tech entirely.
Tesla Blames Trade Policy and Supply Chain Chaos
Tesla didn’t shy away from blaming external factors for its recent woes.
In its earnings release, the company pointed to the volatile global market, trade disputes, and supply chain disruptions.
“Uncertainty in the auto and energy markets is growing fast,” the company said, adding that new trade policies are making it tougher—and more expensive—to build their cars.
So, what’s next for Tesla? The brand is still a leader, but the landscape around it is changing fast.
With political backlash, fierce competition, and internal challenges piling up, Tesla’s road ahead looks bumpier than ever.
Investors and fans alike will be watching closely to see how—or if—Elon Musk can steer the company back on course.