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Tesla\u2019s flailing sales figures<\/a> have put the company closer to the red than it has been in years, according to financial results <\/a>released Tuesday, threatening one of its biggest advantages over other EV players.<\/p>\n The electric automaker reported $409 million in net income on $19.3 billion in revenue after delivering almost 337,000 EVs in the first quarter of the year. The company\u2019s net income reflects a 71% drop from the same quarter last year. <\/p>\n It was the worst quarter for Tesla deliveries in more than two years and came on the heels of the company\u2019s first-ever year-to-year drop in sales<\/a>. Tesla\u2019s income was buffered by selling $595 million in zero-emissions tax credits, according to its earnings report \u2014 without those, it would have posted a loss.<\/p>\n And yet, Tesla stock rose in after-hours trading as investors put more weight on the company\u2019s plans to begin production on an affordable EV in June and CEO Elon Musk\u2019s comments during an earnings call that he would reduce his role with the Department of Government Efficiency to focus more attention on Tesla. Musk did not commit to ending his DOGE work altogether though, noting he may continue<\/a> in some capacity through the remainder of President Donald Trump\u2019s second term. <\/p>\n TechCrunch published a roundup of other Musk comments<\/a> covering tariffs, robotaxis, AI, and EVs, during Tesla\u2019s earnings call.<\/p>\n Tesla also cautioned shareholders about how the trade war may affect its business moving forward.\u00a0The company said President Trump\u2019s tariffs and \u201cchanging political sentiment\u201d could have a \u201cmeaningful impact on demand for our products.\u201d<\/p>\n The company noted the current tariffs, the bulk of which are directed at China, will have \u201ca relatively larger impact on our Energy business compared to automotive.\u201d Tesla said it is taking actions to stabilize the business in the medium to long term and focus on maintaining its health, but it also cautioned investors that it can\u2019t say whether it will be able to grow sales this year.<\/p>\n Tesla is sticking to its ambitious (but mysterious) plans around making more affordable models, stating it remains on track for start of production of these vehicles in the first half of 2025. During the earnings call, Musk was more specific, stating production would begin in June. <\/p>\n These vehicles will use aspects of a next-generation platform that powers the robotaxi, but will rely on its existing one that powers the Model Y and Model 3, the company said in its shareholder\u2019s letter. As such, these cheaper vehicles will be produced on the same manufacturing lines as the current vehicle lineup, the company said.<\/p>\n This flies in the face of a Reuters report from last week that claimed the first of these new EVs is delayed by months<\/a>.<\/p>\n Tesla\u2019s sales are up against a number of headwinds.\u00a0<\/p>\n The company\u2019s EV lineup is aging (though the sedans and SUVs have now all gotten face-lifts) and its newest product, the Cybertruck, is nowhere near the hit that CEO Elon Musk thought it could be. And Musk\u2019s far-right politics, along with his involvement in the Trump administration, have created a sizable backlash to Tesla\u2019s brand.\u00a0<\/p>\n At the same time, Musk has oriented the company toward its Robotaxi and Optimus robot projects.\u00a0<\/p>\n He has promised to launch an initial version of the Robotaxi service in Austin this June, with other cities potentially coming by the end of this year, but has been light on details about how it will work.\u00a0<\/p>\n Musk has yet to demonstrate that Teslas are capable of driving themselves without human intervention despite years of making that promise. What\u2019s more, The Information recently reported that an internal analysis done at Tesla showed the Robotaxi program would lose money for a long period of time even if it were to work<\/a>.\u00a0<\/p>\n At this time last year, Tesla was grappling with some gloomy numbers. In case you forgot, the company\u2019s profits fell 55% to $1.13 billion in the first quarter of 2024 from the same period in 2023. Tesla said it was due to a protracted EV price-cutting strategy and \u201cseveral unforeseen challenges\u201d cut into the automaker\u2019s bottom line.<\/p>\n Tesla tried to turn that profit ship around, but faced continued pressure. In Q2 of 2024, Tesla reported $1.5 billion in profit, down 45% from the same period in 2023. Profits were hit by a $622 million restructuring charge. Although it\u2019s worth noting, that profit was padded by a record $890 million in regulatory credit sales.<\/p>\n