According to news agency AP, Tesla’s profits dropped by 13 % in the first quarter of 2025, indicating the electric car manufacturer’s potential difficulties are still unsolved.
A number of components, including an aging car line-up, increased opposition, and pushback from CEO Elon Musk‘s accept of right-wing politicians, are to blame for the collapse, which saw world shipments decline to 336, 681 units in the January-March time, down from 387, 000 during the same time last year.
Tesla also fell short of economists ‘ expectations, despite offering substantial discounts, no funding, and other incentives, for which FactSet had anticipated much higher sales of 408, 000.
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Tesla’s investment performance
Since reaching a record high in mid-December, Tesla’s stock has fallen by about 50 % since reaching a record high as a result of declining anticipations of less restriction and significant gains under a Donald Trump presidency.
Analysts are unsure about the exact effects of these protests on sales because the market for electric vehicles ( EVs ) has also been sluggish. Tesla, in special, is having trouble selling its best-selling Model Y because it is awaiting an update later this month.
Additionally, Tesla has lost market share as a result of fierce competition, with BYD and other competitors gaining surface. The Chinese president of electric vehicle technology just unveiled a technology that makes Tesla’s cars charge in a matter of minutes, putting the pressure on them even more.
Tesla’s stock dropped by more than 4 % before the market opened on Wednesday.
