Tesla profit plunges but shares rise as Musk flags DOGE pullback
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The news: Tesla has reported that its net profit plunged 71% year on year in the first quarter as it flagged impacts from US tariffs and "changing political sentiment".
The numbers: The EV maker said its net profit fell to USD409 million from USD1.39 billion a year earlier. Revenue fell 9% to USD19 billion over the same period, with a deeper drop within its auto segment.
The company reported earnings per share of 27 US cents, below investor expectations of 43 US cents.
Despite the weak results, Tesla shares rose in after-hours trading and gained further during the company's earnings call to be more than 4% higher at 7.50am AEST.
The context: In its quarterly update, Tesla said uncertainty caused by "rapidly evolving trade policy" was hitting the global supply chain and the cost structure of the company and its peers.
"This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term," it said.
Tesla has been the focus of protests and taken a hit to its reputation over CEO Elon Musk's involvement with the Trump administration
The company is also facing increasing competition from overseas electric vehicle makers, especially China's BYD.
What they said: On the earnings call, Musk told investors he would start reducing the time he spends working with the Trump administration's Department of Government Efficiency in May.
"I think starting probably next month, May, my time allocation to DOGE will drop significantly,” he said.
Musk also said he will continue to advocate for lower tariffs, but that's all he can do.
"The tariff decision is entirely up to the President of the United States," he said.
The sources: Tesla quarterly update deck, Bloomberg
