this post was submitted on 09 May 2025
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Things are undoubtedly bad at Tesla. Its sales are dwindling. Its profits are plunging, as is its share price. There are regular protests outside its showrooms. The Cybertruck is a flop. And somehow, it’s actually a lot worse than that.

The 71% drop in net income it just reported may have been overshadowed by CEO Elon Musk’s announcement that he would be stepping back from his controversial duties at the Department of Government Efficiency (DOGE). But that drop is just one indication of serious financial sickness at the EV maker, problems brought on by falling sales for the first time in its history and falling prices for electric vehicles.

The bottom line problem at Tesla is its vanishing bottom line. A deeper look at its first quarter report shows it’s now losing money on what should be its ostensible reason for existence – selling cars.

It was only able to post a $409 million profit in the quarter thanks to the sale of $595 million worth of regulatory credits to other automakers.

But if the Trump administration gets its way, the company can kiss those regulatory credits keeping it in the black goodbye, too.

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[–] Thorry84@feddit.nl 34 points 1 day ago (4 children)

Its profits are plunging, as is its share price.

Looks at share price: Up 10% in the last month....

[–] potatopotato@sh.itjust.works 37 points 1 day ago (2 children)

The market can remain irrational longer that you can remain solvent.

The problem isn't that you can't predict when a stock is mispriced, that's sometimes very easy, it's predicting when all the other dipshits will come to the same conclusion because ultimately that's all that matters.

Right now musk still has a personality cult and there are a lot of morons buying the stock like their worldview depends on it. They don't read the earnings reports, they don't read unbiased news, they mostly don't even own the cars, they just think it's going to the moon because...for lack of a better word, propaganda.

[–] shalafi@lemmy.world 4 points 1 day ago

Nailed it. I'd add that investors are treating it as a meme stock, and as you said, it's unrealistic. Fuck me, talk about a house of cards.

[–] Geobloke@lemm.ee 1 points 2 hours ago

People interested in cars have been scratching our heads with Tesla for years. Like at one point it was worth more than every other car market combined and its value kept going up. I mean there seems like years of irrational prices to the point it would be silly to bet against it

[–] JohnEdwa@sopuli.xyz 10 points 1 day ago* (last edited 1 day ago) (1 children)

But still down 20% from the start of the year, when Trump was supposed to make it soar.
It's not going to survive this high for long with the abysmal sales figures coming from the rest of the world, even if the Musk cult currently still keeps pretending everything is going great.

[–] sfled@lemm.ee 5 points 1 day ago

Wait, you mean The Commercial on the White House lawn back in March didn't move more units?! surprisedpikachuface.jpg

[–] TheFonz@lemmy.world 3 points 1 day ago

How is it possible that tesla is losing sales in markets where EVs are growing? Not a good sign

[–] Ulrich@feddit.org -1 points 1 day ago (1 children)

Publications LOOOOVE to write these articles and then sit on them until the stock gets like a 1-day 5% drop so they can misrepresent the situation. Take a look back 6 months or 12 mos. and it's even greater.

[–] ripcord@lemmy.world 1 points 23 hours ago (1 children)

sit on them until the stock gets like a 1-day 5% drop so they can misrepresent the situation

ok, but that didn't happen here

[–] Ulrich@feddit.org 0 points 4 hours ago

Point is, it only looks bad if you look at a very specific period of time.