Tesla Boycotts Work: First Quarter Earnings was a Disaster
The first quarter financial results came out on Tuesday and they were TERRIBLE.
Tesla’s revenue for the quarter fell 9.4٪ from last year which missed Wall Street predictions by about $1.8 billion. Profits on the other hand had a steep drop as well, with Tesla reporting 71% less net income compared to last year (a total of $409 million).
VIA Forbes
Tesla’s most popular model deliveries, 3 and Y fell by 16% year over year, and Cybertruck fell by 24%. Tesla said in a letter to investors that global market turbulence and their political unpopularity was to partially blame for the catastrophic performance. I wish they would’ve at least acknowledged Elon’s role, but what do we expect from a company that’s moving the way Tesla is?
The only reason why Tesla didn’t lose more money is because their regulatory credits gave them $595 million in sales. Without that, they would’ve really been screwed.
Elon Musk spent more than a quarter billion dollars to get Trump elected. Trump tried to return the favor by doing a White House sales pitch for Tesla, with his Commerce Secretary Howard Lutnick also joining Fox news to urge its viewers to buy Tesla shares. Still doesn’t seem to be working (shocker).
Although Elon Musk shrugged off the earnings call on X, reports came out that he is taking a step back from government work. He said on the earnings call that he plans to devote more of his attention to running Tesla rather than doing government work.
In the past, I wrote this article covering how Musk has been dealing with a lot of backlash from what seems like everyone around him. People selling large amounts of shares, stock value plummeting, and more. I also covered in a different article how the global protests against Musk are working. But now that the earnings call was officially released, we have definitive answers to how badly this is all impacting his company.
In the end, the numbers speak for themselves… Tesla is in trouble. From the plummeting revenue, collapsing profits, declining deliveries and over reliance on regulatory credits to stay afloat, the cracks in their armor are showing more and more.
While Musk claims that he is refocusing on Tesla, his damage is irreversible. The general public now does not like him and no amount of crisis PR can save him from the disaster he created for himself.
Omg! I’m like how many paragraphs in? and already seeing red. He CAUSED the global market turbulence! He CAUSED the unpopularity! He should’ve just said, “ME,” when asked why Tesla stock plummeted & nobody’s buying Tesla’s & ppl are setting them on 🔥& there are protests every day at Tesla dealerships & ITS ALL ELON!!! Some ppl are JUST GIVING THEM AWAY!
Just remember: Don’t Stop Protesting!! The road ahead is still very long. Take the “victory” like a water drink at the 3 mile water station during a marathon or ultramarathon, celebrate the distance already completed, but knowing there is still many, many miles ahead.