Are you sitting down? Because we’ve got some absolutely predictable news for you! According to a company earnings call, Tesla’s profits have fallen 71% over the past three months. Its total revenue has decreased by 9% since last year, and its revenue from cars has decreased by 20% over the first three months of 2025.
The company’s shares have dropped to roughly half their value after an all-time high in December.
In a statement ahead of the earnings call, Tesla pointed out that “changing political sentiment” may hurt demand for their products. They also noted that the “current tariff landscape” has caused them to take “actions to stabilize the business in the medium to long-term and focus on maintaining its health.”
Despite CEO Elon Musk saying the company was in a relatively good position to withstand the current administration’s tariffs due to its localized supply chains. Probably why he felt the need to remind everyone on April 22nd that he doesn’t support Donald Trump’s push for higher ones.
“I’ve been on the record many times as saying that I believe lower tariffs are generally a good idea,” said Musk. “But this decision is fundamentally up to the elected representative of the people, being the president of United States. So, you know, I’ll continue to advocate for lower tariffs … but that’s all I can do.”
Why The Downturn For Tesla
The dip in Tela’s sales seems to stem from backlash against Musk’s current political dealings. His actions and…Roman salutes earned the company’s Cybertruck the moniker Swasticar. “The negative impact of vandalism and unwarranted hostility towards our brand and our people, had an impact in certain markets,” said Vaibhav Taneja, Tesla CFO, during the earnings call. “Despite this, we were able to sell out legacy Model Y. We produced the legacy Model Y until the end of February.”
With Musk’s temporary status as a government employee expiring next month, Tesla is asking him to step down and return to a full-time role at the company. He defended his work with the Department of Government Efficiency (DOGE), claiming that it is necessary. While conceding that “working for the government to get the financial house in order is mostly done.”
“I think starting probably next month in May, my time allocation to those will drop significantly,” says Musk. Then clarified that he’d keep working for the government one or two days a week for the remainder of the current administration. To “make sure that the waste and fraud that we stopped does not come roaring back.” (DOGE has yet to prove any of this alleged fraud.)
Musk also claimed that protesters were demonstrating because they were “receiving fraudulent money.” (Something there also seems to be no proof of. If anyone finds some, please let us know, we’d love to get paid to hold up some signs.)
