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Things at Tesla are worse than they appear (edition.cnn.com)

submitted 5 days ago by technocrit@lemmy.dbzer0.com to c/technology@lemmy.world

92 comments fedilink hide all child comments

Things are undoubtedly bad at Tesla. Its sales are dwindling. Its profits are plunging, as is its share price. There are regular protests outside its showrooms. The Cybertruck is a flop. And somehow, it’s actually a lot worse than that.

The 71% drop in net income it just reported may have been overshadowed by CEO Elon Musk’s announcement that he would be stepping back from his controversial duties at the Department of Government Efficiency (DOGE). But that drop is just one indication of serious financial sickness at the EV maker, problems brought on by falling sales for the first time in its history and falling prices for electric vehicles.

The bottom line problem at Tesla is its vanishing bottom line. A deeper look at its first quarter report shows it’s now losing money on what should be its ostensible reason for existence – selling cars.

It was only able to post a $409 million profit in the quarter thanks to the sale of $595 million worth of regulatory credits to other automakers.

But if the Trump administration gets its way, the company can kiss those regulatory credits keeping it in the black goodbye, too.

(page 2) 42 comments

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[–] jaybone@lemmy.zip 4 points 5 days ago (1 children)

Weren’t they selling like 3000 cars a day at every single dealership in Canada? Seems like sales should be fine.

Funny how now they are making money selling regulatory credits. Lol

[–] AmidFuror@fedia.io 7 points 5 days ago (1 children)

I think your comment is misunderstood.

The 3000 cars a day were just for a few days before the government credits were set to expire.

[–] jaybone@lemmy.zip 7 points 5 days ago (3 children)

Yeah some people don’t get sarcasm.

Anyway I think musk took the Canadian credits and smuggled them across the border without paying tariffs so he could then sell them as US regulatory credits. It all makes sense now.

[–] AwesomeLowlander@sh.itjust.works 4 points 4 days ago

Without the /s, it could have been a standard Muskie comment. Hard to tell online.

[–] ripcord@lemmy.world 1 points 5 days ago* (last edited 5 days ago)

Because they weren't selling 3000 a day. They were selling a huge number a minute, one day (maybe a couple).

[–] shalafi@lemmy.world 1 points 5 days ago

I'm often stunned that internet people take everything a face value, even an obvious post like yours. OTOH, Americans' read at an average of 7th-8th grade levels. Go figure.

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