Tesla's net profits for the first quarter of 2025 plummeted by 71%, according to CNBC. CEO Elon Musk attributed this decline to ongoing trade wars and difficulties in scaling up production of the Optimus humanoid robot.
Musk stated that Tesla is working with Beijing to secure necessary resources for Optimus production, emphasizing the robot's importance to the company's future. He denied any connection between these requests and military applications. The Optimus robot prototype was initially unveiled in 2022, with plans announced in 2024 to integrate these robots into Tesla's production facilities starting in 2025.
Tesla's financial results for January-March 2025 revealed a significant downturn, citing uncertainties in the automotive and energy sectors, as well as rapidly evolving trade policies. The company's Q1 earnings fell short of expectations, with revenue at $19.34 billion and earnings per share at $0.27. Tesla produced 362,615 vehicles and delivered 336,681 in Q1 2025, a decrease from the previous year.
Adding to Tesla's challenges, Musk's involvement as an advisor to President Trump's Department of Government Efficiency (DOGE) has sparked protests and boycotts. Musk has announced he will reduce his time at DOGE starting in May to focus on Tesla's challenges, while still dedicating one to two days a week to government matters at Trump's request.