TSL revenue plunges! Automotive revenue down 20% year-over-year, poor start in 2025.

TSL's latest financial report has been released, showing that both revenue and profit for the first quarter fell short of expectations, with the automotive division suffering a 20% decline. Musk is entangled in political turmoil, and coupled with the instability of global trade policies, this electric vehicle giant is under immense pressure.

Automobile revenue plummeted by 20%, with total revenue decreasing by 9% year-on-year.

TSL announced its Q1 2025 financial report on Tuesday, showing a dramatic decline in automotive revenue. The automotive segment's revenue for the quarter was $14 billion, a 20% decrease from $17.4 billion in the same period last year. Overall revenue also fell to $19.34 billion, below market expectations of $21.11 billion, representing a year-over-year decline of 9%.

Earnings per share were adjusted to $0.27, significantly lower than analysts' expectations of $0.39. Net profit plummeted by 71%, leaving only $409 million, far from $1.39 billion in the same period last year.

Why is the performance declining? The main reasons are production line upgrades and price pressures.

TSL pointed out that the decline in revenue is partly due to the four major car manufacturers worldwide upgrading their production lines in preparation for the upcoming new version of the Model Y. In addition, the decline in average selling price and the increase in promotional discounts further compressed profit margins.

Without relying on income from Regulatory Credits, TSL may face losses in automobile sales this quarter. This income surged from $432 million in the same period last year to $595 million, becoming a critical lifeline.

Musk's political turmoil continues, and market confidence is shaken.

Not only has the financial performance raised alarms, but Musk's recent political stance has also caused market unease. He has spent most of this year at the White House, assisting in the efforts to reduce the size of the federal government. Trump's tariff offensive has further worried the market about rising costs of components and manufacturing equipment, potentially affecting everything from batteries and glass to circuit boards.

TSL also admitted in its financial report: "The uncertainty in the global automotive and energy markets is rapidly increasing, and the changing trade policies and political climate will have a significant short-term impact on demand."

The stock has dropped 41% this year, and the market continues to be volatile.

As of now, TSL's stock price has plummeted by 41% in 2025. This first quarter has seen the worst quarterly performance since 2022. In after-hours trading on Tuesday, the stock price initially showed no significant movement, but rebounded nearly 5% after Trump stated that he "will not fire Federal Reserve Chairman Powell."

Sales performance continues to be weak, with protests rising in Europe and America.

TSL's vehicle deliveries in the first quarter fell by 13%, totaling 336,681 units. This wave of sluggish sales has also led to protests in the European and American markets, especially after Musk publicly supported the far-right AfD party in Germany, resulting in a more negative public perception.

In addition, facing pressure from low-priced competitors in China, TSL is taking cautious steps and struggling to maintain its market share advantage. In the U.S. autonomous taxi market, it is also lagging behind Waymo, a subsidiary of Google.

The Robotaxi and humanoid robot projects are still in progress.

Despite the pressure on operations, TSL emphasizes that the pace of technological innovation has not stopped. The company confirmed that it will launch its first autonomous taxi service pilot program in Austin, Texas, in June, and will initiate a trial production line for humanoid robots in Fremont, California.

However, AI-related expenses have also driven up overall operating costs. This quarter, operating revenue decreased by 66%, leaving only 400 million dollars, and the operating profit margin shrank to 2.1%.

The energy business grew against the trend by 67%, driven by AI, increasing the demand for energy storage.

The highlight comes from the energy sector. Revenue from the energy generation and storage division surged by 67% to reach $2.73 billion, far exceeding last year's $1.64 billion. TSL stated that the rapid expansion of AI infrastructure presents significant business opportunities for energy storage products, which can help stabilize the grid and enhance energy dispatch efficiency.

But TSL also reminds that the department is highly dependent on foreign supply chains. If global tariff policies heat up, it will lead to market fluctuations and supply-demand imbalances.

This article reports that TSL's revenue has plummeted! Automotive revenue decreased by 20% year-on-year, and the start of 2025 is unfavorable. First appeared in Chain News ABMedia.