It was hard to miss yesterday's news that Tesla's first-quarter 2025 earnings were 71% lower than the same quarter in 2024, which — good. In addition to the utter damage Elon Musk is doing to our country (and the world, by extension), the company is a bad investment, the products it has are not worth buying, and the products it claims it will have will never be for sale.
The thing I didn't know about the remaining profit, though, is that none of it comes from the sales of products. The company's overall operating profit was $400 million, which came from $595 million in automotive regulatory credits. Forbes described those as "all essentially free profit Tesla receives from its gas car rivals looking to comply with emission requirements." Those credits, of course, come from the federal government and U.S. tax payers.
The company had several additional million dollars in revenue from interest on investments, which made its bottom line look better, but that money also is not from sales.
Tesla cars are money-losers, and this was its first year-to-year decrease in sales, according to Tech Crunch (linked above). Musk and the company are covering up reality. When none of the promises he made yesterday pan out — once again — maybe it will have some effect this time, given the hole he's sinking in already.
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