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Market Chatter Swirls Around Musk's DOGE Commitment during Tesla Earnings Call
Earnings of Tesla fail to meet expectations; Elon Musk predicts a substantial decrease in the value of Dogecoin
It's all about squeezing the most out of Tesla's earnings call and Elon Musk's future with DOGE on 'The Big Money Show.'
Tesla's electric vehicle sales plummeted in the first quarter of 2025, compared to the same period the previous year. The automotive giant, helmed by CEO Elon Musk, banked $13.97 billion in revenue from automotive sales alone - a considerable drop of nearly 20%.
During the earnings call, Elon Musk hinted at a decrease in his time dedicated to DOGE, which he spearheaded early in the second Trump administration as part of the Department of Government Efficiency (DOGE).
Tesla's overall revenue – electricity generation and storage, services, and other streams – reached $19.3 billion in the first quarter of 2025, marking a 9% decline compared to the same period last year.
TSLA
Fewer vehicle deliveries, pricier units, and other factors contributed to Tesla's tumble in total revenue. Specifically, the Model Y's update across all factories led to fewer deliveries, while the lower average selling prices and incentives had an impact as well.
TESLA INC.
EV Manufacturer Fights Rapid Demand Slump and Political Turmoil
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In recent months, Tesla has faced protests and violence linked to Elon Musk's position in DOGE. The electric vehicle giant reported 323,800 deliveries in the first quarter of 2025, versus 386,810 deliveries during the same period last year.
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Tesla's energy generation and storage segment contributed $2.73 billion in revenue, recording a 67% increase compared to the same period in 2024. Meanwhile, services and other revenue grew 15% year-over-year, reaching nearly $2.64 billion in the first quarter.
9.80%
The company acknowledged the uncertainty looming over the automotive, energy, and related markets due to rapidly evolving trade policy and its effect on global supply chains and cost structures. It warned that changing political sentiment might have a noticeable impact on product demand in the near term.
For quarterly net income, Tesla recorded $409 million, representing a 71% decrease compared to the first quarter of 2024. Diluted earnings per share stood at $0.27, a 40% decline from the previous year.
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Tesla's operating margin fell by 343 basis points year-over-year in the first quarter, landing at 2.1%. In its outlook, the company expressed difficulty in quantifying the impact of shifting global trade policy on the supply chains, cost structure, and product demand.
"We are making prudent investments this year that will set up both our vehicle and energy businesses for growth," Tesla said. "However, the rate of growth this year will depend on factors such as the pace of our autonomy efforts, production ramp at our factories, and the broader economic environment."
The Oil & Gas Association's President Cuts His Own Carbon Footprint by Choosing Tesla
Tesla anticipates starting production of new vehicles in the first half of the year, with more affordable vehicles a part of the mix. Currently, Tesla's lineup consists of the Model S, Model 3, Model Y, Model X, and the Cybertruck. The company also produces electric semi-trucks.
Elon Musk’s role in DOGE is expected to significantly shrink in the near future, as he plans to pare down his involvement and focus more on his responsibilities at Tesla. This shift may help Tesla stabilize or even boost its performance.
- Elon Musk's future involvement with Dogecoin (DOGE) was a hot topic during the recent Tesla earnings call, raising questions about his commitment to the digital currency.
- Despite a decrease in vehicle deliveries and higher-priced units, Tesla still managed to generate $19.3 billion in revenue from its automotive sales, electricity generation, services, and other streams in the first quarter of 2025.
- The automotive industry is grappling with both a demand slump and political turmoil, as Tesla's electric vehicle sales dropped significantly in the first quarter compared to the previous year.
- Tesla's energy generation and storage segment saw a 67% increase in revenue compared to the same period in 2024, while services and other revenue grew by 15% year-over-year.
- Companies are making strategic investments this year to position themselves for growth in the vehicle and energy businesses, but the rate of growth will depend on factors such as autonomy efforts, production ramp-up, and the broader economic environment.
- The company is preparing to launch new, more affordable vehicles in the first half of the year, adding to its current lineup that includes the Model S, Model 3, Model Y, Model X, Cybertruck, and electric semi-trucks.
- Despite facing protests and violence linked to Elon Musk's position in DOGE, Tesla's finance and technology-driven business model continues to be a major player in the transportation and automotive industry.
