Elon Musk is facing Wall Street’s scrutiny after Tesla’s disappointing first-quarter earnings report, which revealed a huge 71% drop in net income compared to the same period last year. Like a spoiled kid with a bad report card, Musk now has some explaining to do. Is it Trump-era tariffs or his DOGE distractions? Or simply the relentless rise of new EV competitors eating into Tesla’s dominance? Although the reason is unclear, it is undeniable that Tesla’s golden streak has hit a pothole, and investors are waiting to see if Musk can steer the company back on track.

Tesla’s Net Income Dropped 

In the first quarter earnings report by Tesla, the EV company reported $409 million in net income on $19.3 billion in revenue after delivering almost 337,000 EVs in the first quarter of the year. This net income reflects a 71% drop from the same quarter last year. Although Tesla sales are alarming, the company secured itself from posting a loss by selling $595 million in zero-emission tax credits. 

Tesla Stocks Rise 

Although Tesla didn’t perform well in the first quarter of the year and there has been high tension in Wall Street after Trump’s tariffs, Tesla stocks rose in after-hours trading as investors put more weight on the upcoming production of affordable EVs coming in June. These vehicles will use aspects of a next-generation platform that powers the robotaxi, but will rely on its existing one that powers the Model Y and Model 3. 

Musk Aims to Reduce DOGE Involvement

During the call of the first quarterly earnings report by Tesla, Musk indicated that he will limit his involvement in DOGE activities and focus more on the upcoming Tesla EV launches in June. Previously,  Musk also indicated that he would retire from DOGE after completing 130 days.