Financial Performance and Forecast
Tesla reported a 71% drop in net income for Q1 2025, with earnings per share and revenue missing expectations. Total auto revenue fell 20% year-over-year.
Despite the financial downturn, Tesla remains optimistic about future growth, planning to revisit its 2025 guidance in Q2 and focusing on new vehicle productions and autonomous driving initiatives.
Leadership and Strategic Adjustments
CEO announced he would reduce his involvement with the to focus more on Tesla, amid investor and public scrutiny over his dual roles.
Tesla's strategy includes launching a more affordable Model Y and a paid driverless robotaxi service, despite facing stiff competition and operational challenges due to tariffs and political tensions.