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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.
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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.

·Atlanta, United States
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  • 56% of the sources are Center
56% Center
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Fast Company broke the news in on Monday, April 28, 2025.
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