Tesla has withdrawn its guidance for full-year EV sales, citing tariff uncertainty and a significant 20% drop in quarterly automotive revenue. CEO Elon Musk acknowledged the impact of tariffs, particularly those imposed on imports from Canada and Mexico, which are expected to increase vehicle costs. He highlighted Tesla's localized supply chains as a potential advantage but noted challenges in margins.
The company’s Chief Financial Officer, Vaibhav Taneja, warned of additional costs for energy storage operations due to reliance on lithium iron phosphate battery cells from China. Tesla emphasized its plans to maintain liquidity for ongoing projects, including the launch of more affordable EV models and the Cybercab production.
In the first quarter, Tesla’s total revenue fell 9% to $19.3 billion, while net income dropped by 71% to $409 million. Despite a turbulent period impacted by the Model Y refresh and tariff pressures, Tesla remains committed to expanding production capabilities and rolling out pilot projects such as the Robotaxi and Optimus humanoid robot. Shares rose 7% in premarket trading following the announcement.
