Tesla sees massive profit loss amid nationwide backlash to Elon Musk
Elon Musk's affiliation with President Donald Trump has led to huge first-quarter profit loss for his electric vehicle company, Tesla, according to The Wall Street Journal.
The Journal reported that Tesla's "net income slid 71% in the first quarter, as the company struggled to overcome competitive pressure overseas and a reputational hit from Chief Executive Elon Musk’s polarizing role in the Trump administration."
In addition, the company reported "adjusted earnings-per-share of 27 cents, which missed analysts’ expectations of 41 cents."
Musk has become a lightning rod of controversy ever since joining the Trump administration as head of the Department of Government Efficiency and an informal adviser to Trump.
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"Tesla’s core auto business is under pressure," wrote reporter Sean McLain. "The company’s global vehicle deliveries fell 13% in the first quarter, partly because of a consumer backlash against the brand in response to Musk’s role as President Trump’s cost-cutting czar. Tesla has faced protests across the U.S. and Europe, and some of its stores and charging stations have been vandalized or even set on fire."
The article noted that Tesla is also dealing with 25% tariffs on auto imports.
"While Tesla builds its U.S.-sold cars in Texas and California, it relies on neighboring countries for components, including Mexico, which supplies more than 20% of its parts, according to federal data," the report stated.