Tesla Shares Plunge Nearly 10% After Weak Quarterly Earnings; Profit, Sales Miss Estimates
Founder Elon Musk warned of difficult times ahead for the company.
Tesla Inc. shares slipped nearly 10% on Thursday, marking their biggest drop in over a month as the company's revenue slipped to one of its worst recorded stretches.
The automaker's sales and profit slightly missed Bloomberg's estimates, while free cash flow plummeted. Founder Elon Musk warned of difficult times ahead for the company.
This follows a public fallout between Musk and US President Donald Trump, who had appointed the former as the chief of the Department of Government Efficiency (DOGE).
In a quarterly earnings report released Wednesday, Tesla identified the elimination of electric vehicle subsidies and higher tariffs—both implemented during the Trump administration—as two challenges facing its car manufacturing and energy divisions.
(This is a developing story and will be updated shortly).
