Tesla is in worse shape than you think
- Tesla reported a $409 million profit in the most recent quarter, largely due to $595 million in regulatory credit sales, amid falling vehicle sales and margins.
- Falling sales, especially in China and Europe, are driven by rising competition from other EV makers like BYD, which is set to surpass Tesla as the largest EV seller.
- Tesla's profit margin dropped to 12.5%, down from 30% in early 2022, reflecting the company's first annual sales decline and reduced profitability since 2012.
- Elon Musk acknowledged repeatedly missing timelines for full self-driving and robotaxi deployment, referring to himself as 'the boy who cried FSD' during a July 2023 investor call.
- The Trump administration's move to eliminate emissions credits risks Tesla's financial stability, as these credits have been crucial to keeping the company profitable despite current challenges.
22 Articles
22 Articles
Things at Tesla are worse than they appear
How bad are things at Tesla? So bad that it would have lost money in the first three months of the year had it not been the sale of regulatory credits, credits that could be going away if the Trump administration gets its way on auto emissions rules.
Bad news for Tesla: Trump might kill the climate credits that have been a key part of its business model
One crucial factor helped keep Tesla profitable last quarter, and it wasn’t direct car sales. In its latest earnings report, the company said that it earned $595 million from selling regulatory credits to other automakers. The credits are issued by governments, including California, that require car companies to hit certain emissions goals by selling cleaner vehicles. If they don’t, they have to make up the gap by buying credits from companies l…
CoinStats - Tesla becomes the first Mag 7 stock to ever r...
Tesla just did something none of the other Magnificent 7 stocks have pulled off in 2025. It closed above its 200-day moving average, making it the only one of the group to recover that technical line. However, the recovery came after the stock had already lost around 30% year-to-date, and no one buying this rally is looking at the company’s numbers. The data looks worse than ever. According to Redburn Atlantic, Tesla investors should be heading …
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