Tesla’s first-quarter profits plunged by more than two-thirds amid backlash against Elon Musk’s electric car company that has hurt sales and sent its stock plunging.
The Austin, Texas, company said Tuesday that quarterly profits fell by 70% to to $409 million, or 12 cents a share. That’s far below analyst estimates. Tesla’s revenue fell 9% to $19.3 billion in the January through March period, below Wall Street’s forecast.
The disappointing results come as the company struggles to sell cars to consumers angry over Musk’s leadership of a federal government jobs-cutting group that has divided the country and sparked protests. Musk also has publicly supported far-right politicians in Europe and alienated potential buyers there, too.
Many investors have also complained Musk is too distracted with his Trump administration role to be running Tesla and that he should either relinquish his position as CEO or abandon his advisory role in Washington.
The company is expected to roll out a cheaper version of its best-selling vehicle, the Model Y SUV later in the year. Tesla has also said it plans to start a paid driverless robotaxi service in Austin, Texas, in June.
(The Associated Press contributed to this report.)
