• Tesla’s Q1 earnings fell short of expectations, with a 20% drop in automotive revenue and a 9% decline in total revenue. Net income plunged 71% to $409 million, driven by lower selling prices, sales incentives, and factory updates for the Model Y. Operating income fell 66%, with margins narrowing to 2.1%. The company’s reliance on regulatory credits helped offset deeper losses in auto sales. Energy storage revenue, however, surged 67%, supported by AI-driven demand for grid stability.

• The company cited growing trade tensions, rising tariffs, and political uncertainty as risks to both supply chains and demand. Tesla also faces increasing competition in China and lagging progress in the robotaxi space. Despite recent setbacks and a 41% drop in its stock this year, Tesla affirmed its commitment to launching autonomous ride-hailing services in Austin and pilot production of humanoid robots in Fremont. CEO Elon Musk emphasized the need for predictable tariffs and signaled less involvement in government duties moving forward.