- Tesla’s total revenue slipped from $21.3 billion to $19.3 billion in the most recent quarter.
- Total income for the brand has also collapsed from $1.39 billion to $409 million in Q1.
- Affordable new models will use parts from its existing and next-generation platforms.
After a lackluster first quarter, where Tesla’s global sales took a nosedive, the EV giant has now reported its earnings for the same period. And, unsurprisingly, the results aren’t impressive. Revenue fell short of where it was expected to be by analysts, not just because of sluggish sales, but also due to uncertainty across industries and challenges in global supply chains.
But not everything is doom and gloom for Tesla, there’s some good news tucked in there, too. The company insists it’s on the cusp of launching more affordable models.
More: VW Finally Beats Tesla In EV Sales Across Europe
Let’s start with the figures. In Q1, Tesla’s total revenue fell to $19.3 billion, a 9.4% decline from $21.3 billion in Q1 2024. When compared to Q2, Q3, and Q4 of last year, the drop is even more significant, with revenue sitting at $25.5 billion, $25.1 billion, and $25.7 billion, respectively. Even worse was Tesla’s automotive revenue, which dropped from $17.3 billion in Q1 2024 to $13.9 billion this quarter, a 19.6% decline, and peaked at $20 billion in Q3 2024, a 30.5% decrease from that high.
Declining revenue isn’t the only thing that could concern shareholders of the EV brand.T otal income plummeted by 71%, dropping to $409 million, down from $1.39 billion in Q1 2024 and $2.1 billion in Q4 2024.
Why Did This Happen?
Tesla has blamed its decline in revenue on the obvious drop-off in deliveries during the first quarter. As we reported earlier this month, Tesla delivered 336,681 vehicles, down 13 percent from the year prior. It says deliveries fell in part because it was updating its four factories to start building the new Model Y. Tesla also says average vehicle selling prices dropped last quarter.
“Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,” Tesla said. “This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term. We remain committed to expanding our business model to include delivering autonomous robots across multiple form factors and use cases – powered by our real-world AI expertise – to our customers and for use in our factories, as we navigate these headwinds.”
New, More Affordable Models Are Coming
Falling revenue and deliveries don’t make for pretty reading, but Tesla does have some interesting things around the corner. New production vehicles, including more affordable models, will start in the first half of 2025, echoing a statement Tesla made in January and contrary to recent reports of these new models being delayed.
Read: Tesla Reportedly Delays Cheaper Smaller Model Y, Plans Stripped-Down Model 3
Details about these affordable versions are limited, with some suggesting they’ll be stripped down versions of the Model 3 and Model Y. Tesla says they will “utilize aspects of the next generation platform as well as aspects of our current platforms and will be produced on the same manufacturing lines as our current vehicle lineup.”
Elsewhere, Tesla announced that production of the Cybercab is scheduled to begin in 2026. The company also shared that the next-generation Roadster has moved from the “development” phase to “design development,” though it has yet to provide any details on when it will actually launch. Just a reminder: it’s been 7.5 years since the Roadster was first revealed.
Musk Winding Down DOGE Work
Finally, in news that may actually make some shareholders breathe a sigh of relief, Elon Musk will start scaling back his involvement with the Department of Government Efficiency (DOGE). Starting next month, Musk will devote more of his attention to Tesla, where he’s needed most. Perhaps this will bring more stability, though, knowing Musk, expect a few distractions along the way.
