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preCharge News BUSINESS — Tesla Inc. reported a significant downturn in its first-quarter 2025 earnings, with net income plummeting 70% year-over-year to $409 million, or 12 cents per share, falling short of Wall Street’s expectations. Revenue also declined by 9% to $19.3 billion, missing forecasts. The company’s stock has suffered a 41% decline year-to-date, reflecting investor concerns over declining sales and CEO Elon Musk’s controversial political involvement.​

Political Engagements Impact Brand Image and Sales

CEO Elon Musk’s involvement with the Trump administration’s Department of Government Efficiency has drawn criticism, leading to consumer boycotts and protests. This political affiliation has been linked to a 40% drop in Tesla’s stock value this year, as well as a 12.9% decrease in vehicle deliveries compared to the previous year .

Market Competition and Trade Policies Add Pressure

Tesla is contending with increased competition from Chinese EV manufacturer BYD and European automakers offering advanced models. Additionally, U.S. tariffs on imported materials and retaliatory actions from China have forced Tesla to halt orders for its Model S and Model X in that market .

Strategic Initiatives to Revive Growth

In response to these challenges, Tesla plans to launch a lower-cost Model Y SUV and a driverless robotaxi service in Austin, Texas, later this year. These initiatives aim to rejuvenate sales and restore investor confidence amid the company’s current financial and reputational hurdles .

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Associated Press, CNBC News, Fox News, and preCharge News contributed to this report.