What happened
Tesla Tuesday reported a 71% tumble in profits and a 9% drop in revenue last quarter versus a year earlier, a steeper-than-expected decline it attributed in part to a "changing political sentiment" that "could have a meaningful impact on demand for our products in the near term."
Who said what
Investors and shareholders have "become increasingly frustrated" with Telsa CEO Elon Musk, attributing "many of the company's woes to the upheaval he has caused in the federal government" by helming President Donald Trump's DOGE operation, The Washington Post said. Musk defended his DOGE work in a call with Wall Street analysts but said he would be "allocating far more of my time to Tesla" starting next month and spending just "a day or two per week on government matters."
Tesla's 13% drop in global vehicle sales last quarter was due to "intense competition from Chinese carmakers" and its "lack of new models," not just Musk's support of Trump and "far-right causes," The New York Times said. Musk said Tesla's future was in artificial intelligence and long-promised fully autonomous vehicles.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
What next?
Tesla shares, down more than 40% this year, rose 5% in extended trading as investors took "comfort in Tesla reaffirming plans to launch more affordable models later this year," The Wall Street Journal said. But the company has not "displayed a prototype or provided many details about" this cheaper model, the Times said, and "analysts doubt" it will roll out "anytime soon."
-
The great global copper swindleUnder the Radar Rising prices and easy access makes the metal a ‘more attractive target for criminals looking for a quick profit’
-
‘They’re nervous about playing the game’Instant Opinion Opinion, comment and editorials of the day
-
Will Netanyahu get a pardon?Today's Big Question Opponents say yes, if he steps down
-
Trump boosts gas cars in fuel economy rollbackspeed read Watering down fuel efficiency standards is another blow to former President Biden’s effort to boost electric vehicles
-
Hegseth’s Signal chat put troops in peril, probe findsSpeed Read The defense secretary risked the lives of military personnel and violated Pentagon rules, says new report
-
Trump pardons Texas Democratic congressmanspeed read Rep. Henry Cuellar was charged with accepting foreign bribes tied to Azerbaijan and Mexico
-
GOP wins tight House race in red Tennessee districtSpeed Read Republicans maintained their advantage in the House
-
Trump targets ‘garbage’ Somalis ahead of ICE raidsSpeed Read The Department of Homeland Security will launch an immigration operation targeting Somali immigrants in the Minneapolis-St. Paul area
-
Hegseth blames ‘fog of war’ for potential war crimespeed read ‘I did not personally see survivors,’ Hegseth said at a Cabinet meeting
-
Canada joins EU’s $170B SAFE defense fundspeed read This makes it the first non-European Union country in the Security Action for Europe (SAFE) initiative
-
Appeals court disqualifies US Attorney Alina HabbaSpeed Read The former personal attorney to President Donald Trump has been unlawfully serving as US attorney for New Jersey, the ruling says
