Tesla's Q1 Shock: Auto Sales Down 20%, Net Profit Plunges 71%

April 23, 2025

Hey readers,

Tesla just dropped its Q1 earnings report, and the numbers are... well, not what investors wanted to see. 📉

Despite all the buzz around Cybertruck, Full Self-Driving updates, and AI hype, the cold hard numbers paint a different picture — and it’s shaking up the EV market.

📉 The Numbers at a Glance

🔻 Automotive Revenue: Down 20% year-over-year
💥 Net Profit: Down a staggering 71% compared to Q1 2024
📦 Inventory: Still elevated, signaling slower-than-expected demand
🌍 Global Deliveries: Missed estimates, especially in China and Europe

⚠️ What’s Causing the Drop?

Aggressive Price Cuts
- Tesla has been slashing prices globally to defend market share
- Result? Margins are thinning out — fast.
Slower EV Demand
- Global EV sales growth is cooling, especially in key regions like Europe and China
- Rising competition from BYD, Hyundai, and even legacy automakers is squeezing Tesla’s lead
Delayed Model Refreshes
- Expectations for new models (especially the low-cost “Model 2”) are still unmet
- Cybertruck ramp-up is slower than hoped, and production costs remain high

🧠 What Elon Musk Is Saying

During the earnings call, Musk stayed upbeat — highlighting long-term growth, AI developments, and full autonomy. But even he admitted that “short-term pressure is real.”

His message?

“We’re investing in the future, even if today’s numbers are rough.”

📊 Market Reaction

Tesla stock dropped significantly in after-hours trading
Analysts are lowering price targets
Investors are watching upcoming delivery numbers and margin recovery very closely

📝 TL;DR

Tesla’s Q1 auto revenue fell 20%
Net profit crashed 71% YoY
Slower EV demand, rising competition, and lower margins are to blame
Musk remains optimistic, but Wall Street isn’t so sure

📌 Investor Tip:
Keep an eye on Tesla’s next moves:

Will they cut prices again?
Can they ramp up Cybertruck meaningfully?
And when is that affordable EV really coming?

We share various information.