Hi everyone, I'm Maggie McGrath, senior editor at Forbes.

Tesla reported its first quarter 2025 earnings today and profit was down a whopping 70%.

Here to explain exactly what's going on at the automaker is my colleague Alan Onsman.

He is a senior editor covering clean tech and

automotive. Alan, thank you so much for being here. Hi, Maggie. Good to be with you.

You've been covering Tesla for quite some time. Take us through this earnings report.

I mentioned that 70% figure, but can you take us through top line, bottom line, just the basics,

what they reported today?

Yeah.

Honestly, it was the numbers were just awful.

They were below analysts expectations across the board.

Earnings, revenue, net income, everything came in low.

They posted adjusted earnings of 27 cents a share and revenue of $19.3 billion

for the quarter. Analyst had expected $2 billion more, $21.3 billion in revenue for the quarter,

and EPS of 41 cents.

This was bad.

They remained profitable, but only by a whisker.

They reported $409,409 million of net income, which was down 71% from Q1, 2024. And the only thing that kept the

company out of the red was something, these regulatory credit sales that Tesla books. This is

essentially free money. In California, U.S. corporate fuel

efficiency standards, EU efficiency standards. In those markets, automakers have to meet

certain pollution requirements. If they don't, they buy credits to stay in compliance

...