Tesla is facing one of its most financially precarious moments in years, as sluggish sales and mounting global trade tensions cast a shadow over the electric vehicle giant’s once-dominant market position.
According to quarterly financial results released Tuesday, the company reported $409 million in net income on $19.3 billion in revenue. Despite delivering nearly 337,000 vehicles in the first quarter, it marked Tesla’s worst delivery performance in more than two years and followed the company’s first-ever year-over-year drop in sales.
The disappointing results signal mounting pressure on Tesla’s long-held lead over its EV competitors, as demand softens and economic headwinds grow stronger.
Adding to its challenges, Tesla warned that ongoing global trade disputes could further impact its business. “The trade war and changing political sentiment could have a meaningful impact on demand for our products in the near-term,” the company stated in its shareholder report.
Tesla also flagged that current tariffs—many of which target Chinese imports—are likely to weigh more heavily on its Energy division than its core automotive business. In response, the company says it is implementing measures to stabilize operations and focus on long-term resilience.
Despite the sobering outlook, Tesla emphasized its commitment to navigating the turbulence and maintaining its overall business health in the face of increasing global uncertainty.
