Tesla sales plunge but carmaker braces for darker days

Tesla reported a 9% year-over-year drop in revenue for the first quarter of 2025.

The automaker brought in $19.3 billion—$2 billion short of Wall Street’s expectations—as vehicle sales took a significant hit during the first three months of the year.

Despite the setback, analysts remain optimistic about Tesla’s outlook, noting that some had anticipated even worse results.

“Against the backdrop of catastrophic expectations, with everything from sales to margins projected to continue the slump, the less-than-bad numbers have been received as welcome news by Tesla investors,” said Thomas Monteiro, senior analyst at Investing.com.

“If this is the worst it gets for Tesla, then certainly there must be some upside for the stock once tailwinds, such as the highly awaited cheaper model and the Robotaxi, finally hit the market later this year,” Monteiro added.

Tesla CEO Elon Musk is set to step down from his role at the Department of Government Efficiency  (DOGE) on May 30.

(QG - Source: The Guardian - Picture : © Unsplash)