Tesla has had a full start of potholes this year.
The giant earnings of the electric vehicle fell 71% in the first quarter to $ 409 million as the company faced a large number of setbacks, including imminent rates and a brand crisis perpetuated by the outstanding role of executive president Elon Musk in the Trump administration.
The company based in Austin, Texas, reported awarded profits of 27 cents, well below the expectations of 41 cents analysts.
Income during the period fell 9% compared to the year before $ 19.3 billion.
Although the dominant car manufacturer in the world remains, Tesla has seen that its shares submerge almost 40% this year amid a decrease in automotive sales and increases the competition of other electric vehicle manufacturers.
The price of Tesla shares, which increased 4.6% on Wednesday to close at $ 237.97, has been the subject of turbulence for months.
The shares increased after President Trump bought a S model on the White House grass in March, but fell significantly to early April as investors worried more and more about a violent reaction against the Tesla brand.
The treasurers of eight states wrote an open letter to the Board of Directors of Tesla last week, expressing the concern that “Tesla's recent performance indicates deeper challenges of governance and leadership.”
The treasurers questioned the role of Musk in Doge, the so -called government efficiency department, or Doge, and cited the prices of shares and vehicle delivery numbers.
Wedbush Securities Dan Ives analyst previously cut its target price for Tesla shares at more than 40% at $ 315 of $ 550.
IVES said that conducting Tesla's problems is Musk's reputation, which has led to protests and boycots against Tesla and Vandalism incidents in vehicles and loaders of Tesla.
Musk Leadra Dege, who has made controversial cost cuts for the Trump administration.
“Tesla has become a political symbol worldwide and that is not a good thing,” Iives said in an interview. “Musk needs to commit to Tesla and officially step back from Doge to control damage.”
Tesla drivers who were once attracted to the environmental benefits of electric vehicles are increasingly ashamed For the association of his cars with Musk, The Times has reported. Several celebrities have fought from their teslas as part of a public position against the company.
Meanwhile, the resale value of vehicle falls suggests a drop in demand, said Iseecars.com analyst Karl Brauer. In February, Tesla headed the list of brands that lost the value more than resale year after year.
Although Musk has been safely found in Trump's corner, the president's actions in the rates raise a significant challenge for Tesla, which now faces a 25% tax on automotive imports.
This month, Tesla suspended China's crucial auto parts after Trump announced a 145% rate on Chinese products. Tesla had trusted China for the components used to build its cybercadecab, the incipient Musk Robotaxi effort that has not yet reached public roads.
Musk presented the Cybercab in October and said that Tesla's autonomous driving technology would be ready for use in the near future. He has been promoting the company's autonomous driving mode capabilities for years, although the characteristic cannot be used without a human driver behind the steering wheel.
The decision to stop China imports could interrupt the plans to produce CIBERACAB, which are vital for investor confidence in the company. Tesla will also stop importing Chinese pieces for its semi electric truck.
Tesla said it produced 362,615 vehicles in the first quarter and delivered 336,681 vehicles. Deliveries fell 13% compared to last year. The company's newest vehicle, the Cybertruck, has seen a fall in sales.
In a quarterly web transmission, Musk sought to calm investors' concerns, saying that he would spend less time in Washington.
He painted a brilliant future for Tesla, citing the potential of autonomous driving and the prediction that Optimus, the Tesla humanoid robot, would reduce labor costs and increase productivity.
“Tesla will be the most valuable company in the world, but there will be some potholes along the way before that happens,” Musk said in the call.
