Tesla Reports Worst Quarter in Two Years: Profits Down 71%, Sales Plunge 45% in Europe Amid Strategic Shift to Robotaxi

On April 22 Eastern Time, a report released by US electric vehicle manufacturer Tesla showed that the company's net profit in the first quarter of 2025 plummeted by 71% to 409 million US dollars, and its share price dropped by 37% compared to the beginning of the year, marking its worst quarterly performance in more than two years. The main reasons included a 13% year-on-year decline in global sales to 337,000 vehicles, an aging product line, and intensified market competition. At the same time, CEO Elon Musk's support for far-right forces triggered a boycott wave, leading to a sharp drop in sales in many parts of Europe and the United States (a 45% plunge in Europe). Although the revenue from the energy storage business increased by 67%, the sharp decline in automotive business revenue, coupled with rising tariff costs (an increase of 3,000 to 5,000 US dollars per vehicle) and increased investment in AI research and development, put pressure on profits. Facing policy risks (the US plans to cancel tax credits for electric vehicles) and internal challenges, Tesla plans to bet on the Robotaxi project and affordable models, attempting to balance short-term difficulties with long-term transformation.