Tesla reported a sharp year-on-year decline in first-quarter earnings, driven by a fall in deliveries, partly linked to CEO Elon Musk’s political involvement. Revenue and net income both came in well below analysts’ expectations, as factory retooling for new models and macroeconomic uncertainty dampened demand.
Despite the disappointing results, Tesla’s shares jumped more than 5% in after-hours trading, amid a broader rally in equity markets triggered by US President Donald Trump’s remarks that he had no intention of dismissing Federal Reserve Chair Jerome Powell. Nevertheless, Tesla’s shares remain down 34% year-to-date, making it the worst performer among the so-called Magnificent Seven tech stocks.
