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.
Things at tesla are not as bad as they should be.
The only thing in this world trending in the right direction is their stock price
Unfortunately Tesla is up 34% from its low in March (I know because I shorted them before their earnings)
Lol shorting Tesla is a wild move. It’s a meme stock, the price doesn’t reflect anything real.
Not wild, just poorly timed.
Of course, since this is the darkest timeline
Give it some time. I’m sure they could be a whole lot worse still.
Not yet a smoldering crater, then?
OhNoAnyway.jpg.
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.
Without the regulatory credits, and capital gains Tesla would be $500 million in the red.
And sales continue to drop in all markets. Tesla is no longer competitive in China and EU, only in USA due to tariffs on cars.
A couple of years ago Tesla boasted the highest margins in the industry on their cars, now they are so low, that if prices continue to drop, Tesla will soon be at s deficit on every car sold if they try to follow, or if they don’t reduce prices, their cars will simply be too expensive. Damned if you do, damned if you don’t.Maybe they will get bailed out like the airlines did though. I want to see them burn, but nothing seems to work the way it’s supposed to anymore.
Airlines run on paper-thin margins and are critical to the economy and country as a whole. Yeah, we kinda have to keep them afloat. Tesla does not enjoy that sort of role.
Afloat. An airline.
I’m already out.
What about Aeroflot?
Or instead of trying to keep Airlines’s from sinking, we could invest in intercity rail, so there would be travel options. Imagine having a choice
Good.
It also wants to end the right of California and eight other states to demand tougher emissions regulations than the federal standards that would ban the sale of gasoline-powered vehicles by 2035. Without tough emissions rules at the federal and state level, there would be no regulatory credit sales.
The sale of those federal and state credits has been quite lucrative for Tesla, bringing in $8.4 billion in revenue since the start of 2021 alone, money that basically went straight to its bottom line.
Is this the greenwashing scam companies use to pretend that they are working toward a carbon-neutral production line? They’re just speculating on future production and selling today’s emissions to today’s buyers on tomorrow’s promise?
How fucked.
Technically it’s the intended result. It helped fund one or more purely EV manufacturers for the future. Legacy companies chose not to invest n new technology for the longest time, but had to pay the price. At some point that price is too high but the innovators are awarded and the technology has become cheaper, so the surviving legacy manufacturers can adopt it. Ts a good thing that it helped fund a successful EV manufacturer by penalizing the laggards. That was the goal
The only real failure is the credits were apparently too cheap since legacy manufacturers still had to be forced, and are still regressing the first chance they get
What happened to moving the choice to the states?
Good riddance. Nazis dont deserve to be rewarded. They deserve the worse of the worse.
The Nazis actually made good cars. Tesla is all the worst parts without the good cars.
Volkswagens aren’t that great but I get your point.
The original Beetle (at least the ones I worked on from the 1950s and 60s) didn’t have stellar product quality, but it was well-engineered to be maintainable by someone without specialist knowledge or tools. VWAG has definitely gotten worse at quality over the following decades.
Good thing I didn’t use the word great, and I’m talking about the cars they made in the 30s and 40s hence the past tense of “made.”
Good, great etc schematics…swear yall are insufferable on this site.
Good and great are used differently for a reason. It’s not really a semantic difference.
At this point of negative journalism, any company that didn’t choose to bend the knee to Trump’s lunacy would have been denied. The right hates electric vehicles. The right hates these pesky journalists. The right says they’re clever enough to see a grifter. However, when an electric car company run by an un-qualified rich boy from South Afrika utilises the media to inflate their numbers so they can sell more electric cars to the people they betrayed (not their “new customers”, they won’t buy into electric because of their personal politics) it’s all “why have trans people existed for so long?”
Monkeys amongst apes.
Not good. There’s still some remnant of the idealistic vision, hiding from the Nazi.
- robotaxis will eventually be a good thing, but it will be a long time before they’re profitable. I’m all for the experiment, whether teslas approach succeeds or not, but Tesla can no longer afford to stick to a money losing experiment
- the semi has huge potential to disrupt the trucking industry and rapidly decarbonize it. While I do see other companies experimenting with battery trucks, no one else has the potential combining mass produced parts from other vehicles, mass produced charging stations and mega storage, nor are taking the risk to scale up manufacturing. We need to electrify trucking and like it or not Tesla has some unique strengths that may help them succeed first. We need this
- these are teslas big upcoming efforts and they’re both an attempt to be revolutionary, which means risky, money losing. While I can get onboard the protest bandwagon, deprive the Nazi of his god level wealth, we need the EV revolution in trucking
