Tesla's quarterly earnings dropped by 71 percent, the company announced Tuesday, marking the latest sign of bad news for Elon Musk's electric vehicle manufacturer.
The electric vehicle company reported a 9 percent decline in revenue for the first three months of this year. It is expected to host an earnings call with investors at 5:30 pm EDT.
The full financial report comes after Tesla revealed earlier this month its first-quarter sales dropped nearly 13 percent. The company reported 336,000 vehicle deliveries in the January to March quarter, a notable dip from the 387,000 vehicles in the same period a year ago.
The quarter marks its worst showing since 2022 and fell far lower than analysts' expectations.
Tesla's stock plummeted nearly 50 percent since late December as Musk, its chief executive officer, got closer into President Trump's orbit amid Musk's increasing power in the White House and leadership of the Department of Government Efficiency (DOGE).
Company showrooms across the country faced peaceful and some violent demonstrators, including arson attacks, vandalism and shootings.
The Tesla CEO said last month he is having "great difficulty" running his various companies, while managing the work of DOGE.
Ahead of the earnings call, a group of eight state treasurers wrote to Tesla's board of directors, voicing concerns about Musk's leadership of the electric vehicle manufacturer.
"Musk continues to divide his attention across multiple companies and a high-profile advisory role within the federal government," the letter to Robyn Denholm, chair of Tesla's board, stated.
"These external commitments raise serious questions about whether Tesla’s leadership is fully engaged in addressing the company’s core challenges."
Meanwhile, Tesla is also dealing with the ripple effects of Trump's tarrif war. While Tesla was speculated to possibly avoid the brunt of Trump's tariffs due to its focus on domestic production, the company emphasized it is not immune to retaliatory tariffs from other nations.
Tesla suspended new orders of two models on its Chinese website earlier this month as Beijing raised tariffs on American goods to 125 percent in the country's ongoing trade fight with the U.S.
The company did not provide a reason for suspending the orders, though analysts suggested the move showed the tight spot Musk and Tesla are in amid the trade fight.
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