(Credit: Tesla)
Tesla reported a 71% drop in year-over-year profits on Tuesday, bringing in net income of $409 million for January to March. The company had a $595 million zero-emissions tax credit that helped the company continue to make a profit.
The company’s total deliveries were also the lowest they’ve been in two years with it shipping 336,681 units in Q1 2025. In the last quarter of 2024, the company delivered 495,570 units. In Q1 2024, it delivered 386,810 cars.
During Tesla's earnings call, CEO Elon Musk confirmed he would be dedicating more time to the business by stepping back from his role in the Department of Government Efficiency (DOGE) starting in May. “Starting next month, I’ll be allocating far more of my time to Tesla now that the major work of establishing the Department of Government Efficiency is done,” Musk said.
Musk was announced as a "special government employee" on Feb. 3, which limits him to 130 days of government work, meaning his tenure could stretch as far as mid-June.
This echoes what Musk told Fox News last month. When asked if he would "continue past" the 130 days, Musk said, "I think we will have accomplished most of the work required to reduce the deficit by a trillion dollars within that timeframe."
That said, Musk noted in the earnings call that he may still dedicate several days of his week to his work at DOGE throughout the rest of the year.
Tesla stock rose during the earnings call. Alongside Musk’s announcement, the company confirmed it will begin work on a cheaper EV line in June 2025 after Reuters reported that the EV maker had been forced to delay the start of production by several months.
Little is known about the company’s plans for cheaper cars; Reuters suggests one option will be a stripped-down Model Y. A $25,000 Tesla is unlikely, though some rumors have tipped a $30,000 starting price.
On the earnings call, Tesla's VP of Vehicle Engineering, Lars Moravy, said, "The models that come out in the next months will be built on our lines and will resemble in form and shape the cars we currently make. The key is they'll be affordable and you'll be able to buy one.”
The company also confirmed it is still on track for its robotaxi rollout, which will start in Austin, Texas, in June. Musk said during the call that the company’s goal is to bring it to more US cities by the end of the year, but the company didn’t provide any further information.