Tesla Inc. reported weaker-than-expected first-quarter earnings on Tuesday, highlighting a sharp decline in automotive revenue that underscored the mounting pressures facing the electric vehicle (EV) industry.
Adjusted earnings fell to USD0.27 per share on revenue of USD19.34 billion—down from USD0.45 per share and USD21.3 billion in the same period last year. The results came in below analysts’ expectations, reflecting the impact of softening demand, pricing pressures, and broader macroeconomic uncertainties.
Automotive revenue, which accounts for the lion’s share of Tesla’s business, dropped 20 percent on-year. The decline was driven by lower delivery volumes and reduced average selling prices, as Tesla continued to offer discounts to stimulate market demand.
Tesla flagged rising volatility in the global automotive and energy sectors, citing rapidly changing trade policies, supply chain disruptions, and shifting political sentiment as ongoing headwinds. “These factors could meaningfully affect demand for our products in the near term,” the company warned in its earnings release.
The disappointing results add to concerns about Tesla’s ability to maintain growth amid intensifying competition in the EV space and an increasingly cautious consumer environment.
