Tesla Profits Down by 71% in Q1
Tesla’s net profits were down by more than 70 percent in the first quarter of 2025 compared to the same period of last year, according to the latest figures published by the electric car manufacturer on Tuesday. Global profits were at $409 million for January through to March, down from $1.4 billion in the same period of 2024. This continues the company’s downward trajectory, after an earlier fall of 45 percent in net profits between Q1 2023 and Q1 2024.
Tesla’s European market is reported to have suffered significant declines, with the UK the only major market in the bloc to have seen a growth in registrations in Q1 year-on-year. While many EV makers were struggling even before the start of this year amid strong competition from China, slower-than-expected demand growth and high costs, observers say that Tesla’s new numbers are well below expectations and could be connected to a negative reception of CEO Elon Musk's activity as an advisor to the Trump administration. Speaking to investors on Tuesday, CEO Elon Musk said: “Starting next month, I will be allocating far more of my time to Tesla now that the major work of establishing the Department of Government Efficiency is done.”
Despite the profit drop, Tesla still outsold the next top 10 EV brand names combined in the United States with 128,100 units sold. It was followed by Ford, with 22,550 units sold, representing an 11.5 percent increase year-over-year.