Tesla car crash as both sales and profits tumble amid fears Trump's tariff war will hit demand
Tesla last night warned that tariff wars and political upheaval could take its toll on demand – as it reported a slump in both sales and profits.
The electric car maker last night revealed it missed analyst expectations as earnings tumbled by 71 per cent to £307million and car sales fell 20 per cent to £10.5billion in the first quarter.
It comes after demand for Tesla's vehicles tanked amid the controversy surrounding Tesla chief exec Musk, a close ally of the US president.
Investors are also concerned about growing competition from cheaper rivals and that Musk's position in the Trump administration has pulled his attention away from Tesla.
Ahead of the earnings report, Wedbush analyst Dan Ives warned Musk was facing a 'code red situation' if he continues his government role.
And the manufacturer stands to take a huge hit from Trump's proposed tariffs on the components and materials it imports from countries such as Mexico and China.
Unveiling the crucial update, the company said: 'Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers.
'This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term.'
It comes after the company this month revealed that deliveries tanked 13 per cent in the first three months of this year – its worst quarterly result since 2022.
The figure was much worse than feared by analysts and laid bare the impact of the controversy surrounding Musk.
The dismal result left the Texas-based manufacturer lagging behind Chinese rival BYD which has been dubbed the 'Tesla killer'.
Shenzhen-headquartered BYD – which stands for Build Your Dreams – has overtaken Musk's firm as the world's biggest producer of electric vehicles.
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EXCLUSIVE Donald Trump receives support from huge sporting ally over blistering Elon Musk feud
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The megacity bigger than Scotland where 2,600,000 cameras are always watching
Big Brother is not just watching in the Chinese megacity of Chongqing – he is everywhere, all at once. Boasting a population of 30million people, and stretching across 31,815 square miles, it is one of the largest cities in the world, and even bigger than entire countries – like Scotland. What also sets the former wartime capital of China apart is the sprawling CCTV network that operates inside. Stepping inside Chongqing, every street, alleyway and apartment building is watched by cameras. The way it works is that neighbourhoods are divided into a grid-like pattern with 15-20 households per square. Each grid has a monitor which reports back on residents' activities to local committees. A report to the Chinese National People's Congress from earlier in March offers a glimpse of how this system works and how Chinese authorities are ramping up surveillance even further. 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And Musk threw the Epstein bomb. '@RealDonaldTrump is in the Epstein files. That is the real reason they have not been made public,' Musk wrote. 'Have a nice day, DJT!' Epstein is a serial child sex offender who died in prison in 2019. Trump pledged to release the files related to Epstein, with Attorney General Pam Bondi releasing some pages in February, but most of that information was already in the public domain. 'Mark this post for the future. The truth will come out,' Musk added. Trump didn't directly respond to Musk's Epstein charge, instead posting what amounted to a shrug on Truth Social, while also continuing to back the 'big, beautiful bill.' 'I don't mind Elon turning against me, but he should have done so months ago,' Trump wrote. 'This is one of the Greatest Bills ever presented to Congress.' Later he ignored shouted questions from reporters on Musk's Epstein charge as he hosted the National Fraternal Order of Police executive board in the State Dining Room. Asked for comment, White House press secretary Karoline Leavitt told the Daily Mail in a statement: 'This is an unfortunate episode from Elon, who is unhappy with the One Big Beautiful Bill because it does not include the policies he wanted.' 'The President is focused on passing this historic piece of legislation and making our country great again,' Leavitt added. Trump didn't directly respond to Musk's Epstein charge, instead posting what amounted to a shrug on Truth Social, while also continuing to back the 'big, beautiful bill.' 'I don't mind Elon turning against me, but he should have done so months ago,' Trump wrote. 'This is one of the Greatest Bills ever presented to Congress.' Later he ignored shouted questions from reporters on Musk's Epstein charge as he hosted the National Fraternal Order of Police executive board in the State Dining Room. A source familiar pointed out to the Daily Mail that 'everyone knows President Trump kicked Jeffrey Epstein out of his Palm Beach Golf Club.' 'The Administration itself released Epstein files with the President's name included. This is not a new surprise Elon is uncovering. Everyone already knew this,' the source continued. The source also mused, 'If Elon truly thought the President was more deeply involved with Epstein, why did he hangout with him for 6 months and say he "loves him as much as a straight man can love a straight man?"' It was less than a week ago that Trump gave Musk a golden key and a DOGE send-off from the Oval Office.
