Tesla earnings drop a whopping 71 percent after first quarter of 2025

Last Monday Tesla announced that their quarterly earnings dropped by 71 percent. Its earnings totaled $409 million which was down from the $1.4 billion earnings in the first quarter of last year.

Tesla also reported a nine percent decline in revenue for the first three months of the year compared to a year earlier, according to a company report.

The Tesla stock closed Tuesday afternoon at $238 a share, which was a near 37 percent drop from the beginning of the year.

Tesla’s full financial report comes after they revealed earlier this month that its first quarter sales dropped nearly 13 percent.

The company reported 336,000 vehicle deliveries in the January to March quarter, a decline from the 387,000 vehicles in the same period a year ago.

The stock of Tesla had previously plummeted by nearly 50 percent since late December, with Musk helping with DOGE, which included mass layoffs of some federal agencies.

The numbers came far below the expectations of analysts, following constant scrutiny over Elon Musk’s role with the government agency, DOGE.

On Tuesday during an earnings call, Elon Musk acknowledged the pushback to his current role while also still arguing the importance of his government agency DOGE.

In a statement, Musk said that “time allocation to DOGE will drop significantly” starting next month while also saying that he will likely maintain involvement with DOGE throughout the rest of Donald Trump’s presidential term.

Tesla said in a statement on Tuesday that they are dealing with the effects of the U.S.’s ongoing trade war with China.

Nikolai Wagner is a first-year majoring in broadcast journalism. To email him, contact njw5648@psu.edu.