cross-posted from: https://lemmy.dbzer0.com/post/43917082

Things are undoubtedly bad at Tesla. Its sales are dwindling. Its profits are plunging, as is its share price. There are regular protests outside its showrooms. The Cybertruck is a flop. And somehow, it’s actually a lot worse than that.

The 71% drop in net income it just reported may have been overshadowed by CEO Elon Musk’s announcement that he would be stepping back from his controversial duties at the Department of Government Efficiency (DOGE). But that drop is just one indication of serious financial sickness at the EV maker, problems brought on by falling sales for the first time in its history and falling prices for electric vehicles.

The bottom line problem at Tesla is its vanishing bottom line. A deeper look at its first quarter report shows it’s now losing money on what should be its ostensible reason for existence – selling cars.

It was only able to post a $409 million profit in the quarter thanks to the sale of $595 million worth of regulatory credits to other automakers.

But if the Trump administration gets its way, the company can kiss those regulatory credits keeping it in the black goodbye, too.

    • Eq0@literature.cafeEnglish
      3·
      3 hours ago

      Thanks… I was initially confused about why it talked about the first quarter only

  • thericofactor@sh.itjust.worksEnglish
    3·
    2 hours ago

    If you look purely at what the value is that a Tesla car offers, the value a Chinese e.v.'s offer nowadays, and the share price of Tesla - anyone can see it’s totally illogical. The market is going to correct rather sooner than later.

    • Hotznplotzn@lemmy.sdf.orgEnglish
      3·
      1 hour ago

      the value a Chinese e.v.'s offer nowadays

      We must not forget that this ‘value’ includes forced labour and a hopelessly oversubsidized supply chain. It’s better to buy European rather than supporting slavery.

    • HaraldvonBlauzahn@feddit.orgOPEnglish
      1·
      27 minutes ago

      Tesla has factories in Europe.

      Oh, and Tesla’s Boss also has strong disagreements with some very much European values and practices, like workers’ rights, human right’s, the right to unionize, environmental protections, democracy, and the European Union as a project to achieve lasting peace by international cooperation. Which has led to a number of conflicts.