Tesla's Q1 2025 sees profit plummet, European sales tank, and India poses challenges. Musk faces brand damage and core business pressures, raising doubts about future success.

Tesla's Brutal Reality Check

• Financials:

  • Q1 2025 Net Profit: $409 million (down 71% year-over-year).
  • Revenue: $19.3 billion (missed expectations of $21.35 billion).
  • Automotive Gross Margin: 16.3% (down from 17.4%).
  • Core business is under pressure.

• European Woes:

  • Sales plunge: 45% drop in EU sales in March.
  • Market growth: Occurred even as overall EU EV market grew by 17%.
  • Losing ground in a key market.

• Model 3 Performance:

  • Over 500 hp, 0-60 mph in 2.9 seconds, ~300 miles range.
  • Starting price around $65,000.
  • Fast, but not cheap.

• India Challenges:

  • High import duties (up to 100%), limited charging infrastructure, strong local competition (Tata Motors, Mahindra & Mahindra).
  • Refunding Model 3 reservation fees suggests strategic rethink.
  • India may be a tough market to crack.

• Elon's Balancing Act:

  • Pledging to reduce involvement in DOGE to 1-2 days per week.
  • Addressing brand damage from political activities.
  • Emphasizing robotaxis and autonomous robots as the future.
  • Navigating concerns about tariffs and competition.
  • Can Musk successfully navigate these challenges?

Hot Take: Tesla's biggest problem isn't tariffs or competition – it's Elon himself. His antics are alienating potential customers and distracting him from the core business