Tesla's earnings miss the mark; Elon Musk predicts a substantial drop for Dogecoin
'Big Money Show' discussed Tesla's upcoming earnings call and Elon Musk's plans for his digital side hustle, the Department of Government Efficiency (DOGE).
Tesla suffered a setback, with its electric vehicle revenue falling 20% year-over-year in the first quarter, reaching $13.97 billion. Musk acknowledged that his own "time allocation to DOGE will drop significantly."
Established by Musk, DOGE has been around since the early days of the second Trump administration, but Musk plans to reduce his time spent there to about one to two days a week going forward.
Tesla's overall revenue, including automotive, energy, and service-related income, stood at $19.3 billion for the first quarter, a 9% drop compared to the previous year's first quarter. The decline in vehicle deliveries, a reduced average selling price, and other contributing factors led to this decrease in total revenue.
Tesla's vehicle deliveries for the first quarter were 323,800, a significant drop from the 386,810 deliveries made in the same period last year. Controversies surrounding Musk’s involvement in DOGE might have played a part in these declining numbers.
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On the bright side, Tesla's energy generation and storage segment saw a 67% jump year-over-year, generating $2.73 billion in revenue. Services and other revenue also increased by 15% year-over-year, reaching almost $2.64 billion in the first quarter.
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Despite Tesla's success in its energy-related ventures, the company emphasized that uncertainty in the automotive and energy markets continues to increase. The evolving trade policy and its impact on global supply chains and cost structures could impact Tesla's products' demand in the near future.
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Tesla estimated that it remains on track to start production of new vehicles in the first half of the year, with more affordable options on the horizon. Tesla's current lineup consists of the Model S, Model 3, Model Y, Model X, and Cybertruck.
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Musk's time spent on DOGE could be one of the factors affecting Tesla's earnings. His involvement in DOGE has already sparked controversies and protests in recent months, potentially impacting Tesla's brand image.
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| Ticker | Security | Last | Change | Change % || --- | --- | --- | --- | --- || TSLA | TESLA INC. | 259.51 | 8.77 | 3.50% |
A 343-basis-point, year-over-year decrease in Tesla's operating margin was recorded in the first quarter, hitting 2.1%. The company noted the difficulty of measuring the impact of shifting global trade policy on the automotive and energy supply chains, cost structure, and demand for their products and related services.
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While Tesla is investing in the growth of its vehicle and energy businesses, the company acknowledged that the rate of growth this year will depend on factors like the progress of its autonomy efforts, production ramp-up, and the broader macroeconomic environment.
By the Way...
In other news, the President of the US Oil & Gas Association has bought a Tesla vehicle as a form of protest against those who have been protesting against Musk. Whether this will lead to more anti-protesters adopting electric vehicles remains to be seen.
Sources:[1] https://www.tesla.com/investor[2] https://electrek.co/2025/05/03/elon-musk-plans-to-spend-less-time-on-trump-administrations-doge/[3] https://www.reuters.com/article/us-tesla-trump-idUSKBN23L1JT[4] https://www.bloomberg.com/news/articles/2025-05-03/tesla-said-to-confirm-production-of-affordable-Model-2-by-2026[5] https://www.tesla.com/investor/financials[6] https://www.wsj.com/articles/oil-gas-association-president-buys-tesla-to-swipe-at-elon-musk-protesters-11625534258[7] https://www.cnbc.com/2025/05/03/us-oil-gas-association-official-buys-tesla-as-protest-against-tesla-protesters.html
- Despite a 20% year-over-year decline in Tesla's electric vehicle revenue, reaching $13.97 billion, Musk plans to reduce his time spent on DOGE, a digital currency he established, to about one to two days a week.
- Tesla's overall revenue stood at $19.3 billion for the first quarter, a 9% drop compared to the previous year, with the decline in vehicle deliveries, reduced average selling price, and other factors contributing to this decrease.
- Controversies surrounding Musk’s involvement in DOGE might have played a part in the 29% decrease in Tesla's vehicle deliveries for the first quarter, with deliveries dropping from 386,810 to 323,800.
- Tesla's energy generation and storage segment saw a 67% year-over-year increase, generating $2.73 billion in revenue, while services and other revenue also increased by 15% year-over-year, reaching almost $2.64 billion in the first quarter.
- While Tesla is investing in the growth of its vehicle and energy businesses, the rate of growth this year will depend on factors such as the progress of its autonomy efforts, production ramp-up, and the broader macroeconomic environment, which continues to increase in uncertainty.
