Tesla’s first-quarter earnings for 2025 fell short of expectations, with a net income of $409 million, marking a 70.58 percent decrease from the same period last year. The company reported revenue of $19.34 billion, below the $21.35 billion projected by analysts. This decline was attributed to a drop in vehicle deliveries, which Tesla stated was partly due to the introduction of the new Model Y and lower average selling prices.
Global deliveries in the first quarter totaled 336,681 vehicles, the lowest since the second quarter of 2022. Model 3 and Model Y deliveries reached 323,800 units, down 12.4 percent from the previous year. In China, Tesla sold 134,607 cars, contributing nearly 40 percent of global deliveries but marking a 31.64 percent decrease from the fourth quarter of 2024.
Despite the decline in earnings, Tesla remains optimistic about its growth prospects for 2025. Plans for new vehicles, including more affordable models, are on track for production in the first half of the year. However, the company has postponed updating its full-year guidance until the next quarter in light of the first-quarter results.
Tesla reported a gross profit of $3.15 billion, a 14.69 percent decrease from the previous year. The gross margin for the quarter was 16.3 percent, down 1.1 percentage points from the previous year. The company’s confidence in its automotive business remains strong, with a focus on delivering innovative and high-quality vehicles to its customers.
In related news, Tesla has halted orders for Model S and Model X in China, possibly due to the escalating trade tensions affecting imported models. This move reflects the company’s strategic decision-making in response to external market conditions.
Overall, Tesla’s first-quarter performance reflects a challenging period for the company, but its commitment to innovation and growth remains steadfast. With a focus on delivering cutting-edge electric vehicles to customers globally, Tesla continues to be a major player in the automotive industry.
