The company's net income sank 71% while Tesla missed estimates on revenue and adjusted earnings per share
Tesla's (TSLA+1.13% ) first-quarter earnings are out, and they're not looking good for the automaker. The company reported late Tuesday that net income sank 71%, and its earnings are a double miss in both adjusted earnings-per-share and revenue. Total auto revenue fell 20% year-over-year during the period. How Trump's tariffs could make your iPhone cost $3,500 CC Share Subtitles Off English view video How Trump's tariffs could make your iPhone cost $3,500 How Trump's tariffs could make your iPhone cost $3,500 CC Share Subtitles Off English How Trump's tariffs could make your iPhone cost $3,500 The EV maker reported $19.3 billion in revenue, which was down 9% compared with the same period last year ($21.3 billion). Net income plummeted to $409 million, or 12 cents a share, from $1.39 billion, or 41 cents a share, a year earlier. Advertisement Tesla said the drop in profits was a result of factory retooling needed to make a revamped version of its popular Model Y SUV, along with price cuts and sales incentives that put the brakes on the company's revenue. Advertisement President Donald Trump has imposed 25% tariffs on auto imports — on top of 10% universal tariffs and tariffs on auto parts still to come. While Tesla manufactures the cars it sells in the U.S. in Texas and California, it relies on other countries for parts (Mexico supplies more than 20% of the automaker's parts). Advertisement Tesla left a return-to-growth forecast out of its earnings report, saying it would revisit its 2025 guidance in a Q2 update. "It is difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains, our cost structure and demand for durable goods and related services," Tesla said in its earnings release. "While we are making prudent investments that will set up both our vehicle and energy businesses for growth, the rate of growth this year will depend on a variety of factors, including the rate of acceleration of our autonomy…